Qihoo higher on going-private proposal; Ctrip.com launches $1 billion deal; Synergy spikes

By Rebecca Melvin

New York, June 17 – Qihoo 360 Technology Co. Ltd.’s trio of convertible bonds traded actively on Wednesday and were higher on an outright basis as well as a little better on swap after word that an investor group including the chief executive has offered to buy the Chinese internet company for $77.00 per American Depositary Share.

All three Qihoo convertibles were up uniformly and a little better on swap, a New York-based trader said.

The news pulled other Chinese internet convertibles into play, including those of SouFun Holdings Ltd., which has been identified as a potential buyout target, and YY Inc., an online entertainment and gaming company.

After the market close, Ctrip.com International Ltd. launched an offering to price up to $1 billion of convertible senior notes in two tranches, including $500 million of notes due 2020 and $500 million of notes due 2025.

Ctrip shares were fractionally lower on the session at $75.41, while Qihoo, SouFun and YY were sharply higher.

Meanwhile, there was no gray market on the planned Restoration Hardware Holdings Inc. convertible for most of the session.

Back in established issues. Synergy Pharmaceuticals Inc.’s stock spiked by 68%, and the convertibles were significantly higher, after the New York-based biopharmaceutical company announced positive phase 3 trial results for its plecanatide constipation drug.

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