Morning Commentary: Wix.com convertibles offering looks attractive; Alteryx below par

By Abigail W. Adams

Portland, Me., Aug. 10 – After two weeks with only one small offering pricing, the convertibles primary market showed signs of reopening.

Wix.com Ltd. plans to price $500 million five-year convertible notes after the market close on Monday at par with price talk for a fixed coupon of 0% and an initial conversion premium of 30% to 35%, according to a market source.

The deal was heard to be in the market with assumptions of 300 basis points over Libor and a 40% vol.

The offering looked attractive, a source said.

Meanwhile, it was another slow start to the week in the convertibles secondary space with $51 million on the tape about one hour into Monday’s session.

Alteryx Inc.’s 1% convertible notes due 2026 continued to see activity as the computer software company’s stock continued to sell off.

The 1% convertible notes dropped below par in early trading.

They were down about 3 points outright and were seen changing hands at 99.375.

There was about $4 million of the bonds on the tape early in the session, a source said.

Alteryx’s other tranches were not active.

Alteryx stock traded down to $108.78, a decrease of 10.38%, following last Friday’s decrease of 28%.

Alteryx’s convertible notes sank outright but expanded dollar-neutral last Friday as stock got crushed following the company’s earnings report.

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