GNC trades up on possible sale; Whiting mostly quiet after earnings disappoint; Cobalt up

By Rebecca Melvin

New York, May 2 – GNC Holdings Inc.’s 1.5% convertibles due 2020 popped in early trading action on Monday after the Pittsburgh-based specialty health and wellness retailer said it has started looking at strategic options that include a possible sale of the company.

The company has started a “review of a wide range of strategic and financial alternatives,” according to a news release.

GNC’s 1.5% convertibles were up 4 points at 83.17, according to Trace data. GNC shares, which plunged last Thursday on same-store sale declines, were up about 4% in the early going at $25.30, at the time that the convertible bonds traded. But the GNC shares ended higher, up $1.66, or 6.8%, to $26.02.

Whiting Petroleum Corp. was in focus after the Denver-based oil and gas company posted an earnings disappointment that dragged down the common shares by 10%. The Whiting convertibles were lower but didn’t trade overly actively, a New York-based trader said.

Only about $1 million of the Whiting 1.25% convertibles traded, and approximately the same amount of the 6.25% convertibles, while the 6.5% convertibles traded twice, the trader said.

The Whiting 6.5% convertibles changed hands at 106.9, according to Trace data.

Cobalt International Energy Inc.’s 2.625% convertibles were mentioned in trade as going up slightly on swap ahead of the Houston-based oil-focused exploration and production company’s quarterly earnings report expected early Tuesday.

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