New inContact gains on swap; Whiting Petroleum extends gains; convertibles trendless

By Rebecca Melvin

New York, March 25 – inContact Inc.’s newly priced 2.5% convertibles due 2022 traded up 4 to 5 points on an outright basis and expanded about 2.75 points on swap Wednesday after the Salt Lake City-based internet software company priced $100 million of the seven-year notes at the rich end of talked terms.

The inContact 2.5% convertibles were quoted at 104.625 bid, 105.375 offered versus an underlying share price of $10.90 in the early going, a syndicate source said.

Later, the new bonds were somewhat lower with lower shares. A syndicate source quoted them at 104 to 105 at late afternoon, and a second source said they were in the mid-104 context.

Whiting Petroleum Corp.’s 1.25% convertibles, which debuted in the convertibles market on Tuesday, moved higher again on Wednesday after a strong push up on Tuesday and as the underlying shares stopped Tuesday’s bleeding. The shares lost 30% in Tuesday’s session.

Elsewhere, Cheniere Energy Inc.’s convertibles edged a little lower in active trade and were quoted “around 82.5 to 83,” a New York-based trader said.

There were no clear trends in the overall convertibles market as equity markets sold off, a trader said.

He noted that convertibles tend to quiet down when stocks trade off. “There was some selling in certain names, but there were also buyers, and there was no overwhelming flow except flow in stocks,” he said.

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