Twitter lower to flat as stock drops; IGI plunges outright, in line on swap; CalAmp on tap

By Rebecca Melvin

New York, April 29 – Twitter Inc.’s dual convertible bonds were lower in active trade on an outright basis and slightly lower on swap – but after expanding on swap late Wednesday, the paper was considered essentially in line on swap, after the San Francisco-based social media company reported disappointing earnings, market players said Wednesday.

United States Steel Corp.’s convertibles also fell on an outright basis, but were roughly in line on a hedged basis after the Pittsburgh-based steel maker reported a surprise loss and cut its full-year profit outlook, citing climbing imports related to the strong dollar.

U.S. Steel’s 2.75% convertibles were seen at 121 bid, 121.5 offered versus an underlying share price of $24.27. Previously the bonds were at 129 to 130. U.S. steel shares fell 11.6%.

IGI Laboratories Inc.’s convertibles were also seen down, but in line on swap. In fact, they fell a whopping 22 points on an outright basis after the Buena, N.J.-based specialty generic pharmaceutical company reported first-quarter revenue that missed estimates. In response, Oppenheimer lowered its rating on the shares to “perform” from “outperform.”

Iconix Brand Group Inc.’s convertible bonds also did fine although shares of the New York-based brand management company bounced back to end slightly positive after a lower start.

After the market close CalAmp Corp. launched an offering of $125 million of five-year convertible senior notes that were seen pricing after the market close on Thursday.

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