Convertibles firm; Herbalife slips back to unchanged mark; Weatherford a little lower

By Rebecca Melvin

New York, July 18 – The convertible bond market was trading quietly on Monday, but pricing was firm, as the summer slowdown in market activity remained in effect, a New York-based trader said.

There were no U.S. deal launches on Monday or last week, so the primary market has also been quiet after a busy June.

Herbalife Ltd.’s 2% convertibles due 2019 traded actively in follow through action from Friday when the bond and stock were up in active trade after word that the nutritional supplements company had reached a settlement with federal regulators over its business operations.

The Herbalife bonds were well off of Friday’s highs when the shares spiked on the news. The stock pared gains by the close, ending up $5.89, or 10%, at $65.25.

On Monday, the Herbalife bonds traded at 104.2, according to Trace data, which was off from levels of as high as 108 on Friday, but off only 0.5 point from Friday’s close. Herbalife shares closed down 47 cents, or 0.7%, at $64.78.

Weatherford International Ltd.’s convertible was also noted for activity on a generally slow day. The Weatherford exchangeable was down about a point at 116.4, according to Trace data, as shares of the international oilfield services company slipped a penny or two to about $6.00.

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