Sea continues to trade actively after debut; new CyberArk, Halozyme trade some; RH jumps

By Rebecca Melvin

New York, Nov. 15 – Sea Ltd.’s 1% convertibles saw significant follow-on action in the U.S. market on Friday after the $1 billion deal debuted on Thursday.

The Sea convertible were roughly 0.4 point off of Thursday’s last trades at 102.4, with the underlying shares down about 2%, according to Trace data.

Sea was the second-best performer among three new deals on Thursday, moving up 3 points on an outright basis and up 1.125 points on a dollar-neutral basis.

CyberArk Software Ltd. was also trading in decent volume but little changed after being the outperformer in Thursday’s session. The 0% notes were seen changing hands at 101.575, which was up 0.2 point on the day, according to Trace data. CyberArk shares were trending lower and were last down by $1.62, or 1.4%, at $112.57.

Halozyme Therapeutics Inc.’s 1.25% notes, which lagged on Thursday, also saw activity on Friday.

The Halozyme notes were up 0.3 point to 102.662, according to Trace data, while Halozyme shares lifted. 2.3% to $18.92. The bonds had moved up 1.75 points on an outright basis on Thursday but expanded only about 0.125 point on a swap basis.

In established issues, one name trading up on Friday was RH Holdings Inc. after news that Berkshire Hathaway had an increased stake in the Corte Maduro, Calif.-based furniture retail company. According to a filing with the Securities and Exchange Commission, the investment group owned 1.2 million of the RH shares at the end of the third quarter.

RH’s 0% convertibles due 2023 traded up 4.5 points to 115, as shares rose $13.28, or 7.6%, to $188.47.

Overall, the convertibles market quieted considerably heading into the weekend, however, with valuations reported as little changed for most of the week. Since Tuesday, four notes deals totaling $2.4 billion had priced in U.S. convertibles. On Thursday, $1.9 billion of the new convertibles hit the secondary market and traded up on both an outright and dollar-neutral basis.

Also in news, Tarpon Springs, Fla.-based renewable fuel producer Taronis Technologies Inc. said it is offering $3.5 million of one-year series G convertible preferred stock, or 3,500 shares, and 3,111,111 warrants to purchase shares of common stock, according to an 8-K filing.

The company is also selling 2,097,496 shares of common stock.

The convertible preferred shares are convertible into common stock at a fixed conversion price of $2.25 per share, which represents a 10.9% premium to the last reported sale price of Taronis common stock, according to the filing.

Bradley Woods & Co. Ltd.’s Special Equities Group LLC is the placement agent in connection with the offering, and has agreed to use its reasonable best efforts to place the securities offered.

The net proceeds from the offering will be used to continue the company’s acquisition strategy and for working capital and general corporate purposes, which may include research and development expenditures and capital expenditures.

In international news, Taiwan’s CSBC Co. Ltd. said it plans to price up to NT$3 billion of 0% five-year convertible bonds, representing the company’s first domestic issuance of convertibles, according to a Taiwan Stock Exchange notice.

If the public offering of the NT$100,000 par bonds is carried through competitive auction, the total amount of issuance will depend on the results of the auction, with a minimum issue price of more than or equal to 100% to 102% of face value.

However, if the public offering is carried through book-building, the issue price will be 100% to 102%. The underwriter for the bond was not yet decided. But Fubon Securities Co. Ltd. is serving as agent for payment of the principal and interest.

The shipbuilder plans to use proceeds to fund operations and repay debt.

Mentioned in this article:

CyberArk Software Ltd. Nasdaq: CYBR

Halozyme Therapeutics Inc. Nasdaq: HALO

RH Holdings Inc. NYSE: RH

Sea Ltd. NYSE: SE

Taronis Technologies Inc. Nasdaq: TRNX

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