Cryoport on deck; DISH active; Peloton sinks; Live Nation down outright, up on swap

By Abigail W. Adams

Portland, Me., Nov. 8 – The convertibles primary market continued to churn out offerings with two new deals on deck.

Amyris Inc. plans to price $400 million of five-year convertible notes and Cryoport Inc. plans to price $300 million of five-year convertible notes after the market close on Tuesday.

Meanwhile, it was a slow start to the week in the convertibles secondary space with equity markets continuing to edge higher.

While equity benchmarks gave back much of their gains heading into the close, they still ended the day in positive territory.

The Dow Jones industrial average closed the day up 104 points, or 0.29%, the S&P 500 index closed the day up 0.09%, the Nasdaq Composite closed up 0.07% and the Russell 2000 index finished up 0.18%.

Peloton Interactive Inc.’s 0% convertible notes due 2026 were in focus with the notes again trending lower as the sell-off in stock continued.

DISH Network Corp.’s convertible notes were active although largely unchanged after the company announced a $4 billion straight debt offering.

Live Nation Entertainment Inc.’s 2% convertible notes due 2025 were down outright but up dollar-neutral as stock came in after surging during Friday’s session.

The calendar

The convertibles primary market saw a buildup in its forward calendar with two deals launching after the close.

Amyris plans to price $400 million of five-year convertible notes after the market close on Tuesday with price talk for a coupon of 1.5% to 2% and an initial conversion premium of 30% to 35%, according to a market source.

J.P. Morgan Securities LLC, Cowen Inc. and Oppenheimer & Co. Inc. are bookrunners for the Rule 144A offering, which carries a greenshoe of $60 million.

Cryoport plans to price $300 million in five-year convertible notes with the midpoint of talk for a coupon of 1% and an initial conversion premium of 42.5%, according to a market source.

Jefferies LLC and SVB Leerink LLC are bookrunners for the Rule 144A offering, which carries a greenshoe of $45 million.

Proceeds will be used to repurchase a portion of the company’s 3% convertible notes due 2025 in privately negotiated transactions.

Peloton down again

Peloton’s 0% convertible notes due 2026 remained active on Monday with the notes continuing to trend lower alongside stock.

The 0% notes were off another 1 point with stock down more than 7% during Monday’s session.

The notes were changing hands at 83.625 in the late afternoon.

Peloton’s stock traded to a low of $49.11 and a high of $53.60 before closing the day at $51.22, a decrease of 7.93%.

The notes have lost about 5 points outright since Friday when stock plummeted following the exercise and media company’s third-quarter earnings report.

Stock is down more than 40% since earnings.

However, Peloton’s convertible notes have long been in busted territory and are now largely a yield play, a source said.

DISH active

DISH’s convertible notes were active although largely unchanged after the company announced a $4 billion straight debt offering.

DISH’s 0% convertible notes due 2025 were changing hands at 109.5 versus an equity price of $38.04 early in the session.

They continued to trade on a 109-handle heading into the afternoon.

DISH’s 3.375% convertible notes due 2026 were changing hands at 99.75 versus a stock price of $37.97 early in the session.

They rose to 100.375 in the late afternoon.

DISH’s stock traded to a high of $38.29 and a low of $37.32 before closing the day at $37.76, a decrease of 0.26%.

DISH announced on Monday that it was selling $4 billion in senior secured notes in five-year and seven-year tranches to fund the purchase of wireless spectrum licenses and build out its wireless infrastructure as it prepares to become a mobile phone operator.

While the convertible notes were active, there was little movement in price, sources said.

The activity in the convertible notes was most likely the result of outright and crossover accounts that were selling to switch into the straight debt offering, a source said.

Live Nation gains

Live Nation’s 2% convertible notes due 2025 gave back some of their outright gains but continued to expand dollar-neutral as stock dropped during Monday’s session.

The 2% convertible notes fell about 3 points outright with stock off 5%.

They were changing hands at 131.625 in the late afternoon.

However, the notes expanded dollar-neutral after also gaining as much as 1 point dollar-neutral during Friday’s session.

Live Nation’s stock traded to a high of $120.34 and a low of $113.62 before closing the day at $117.14, a decrease of 5.38%.

The entertainment company’s stock was under pressure on Monday after eight people died at the AstroWorld Festival in Houston.

While stock was under pressure on Monday, it surged 15% on Friday as the reopening trade once again gained prominence.

Mentioned in this article:

Amyris Inc. Nasdaq: AMRS

Cryoport Inc. Nasdaq: CYRX

DISH Network Corp. Nasdaq: DISH

Live Nation Entertainment Inc. NYSE: LYV

Peloton Interactive Inc. Nasdaq: PTON

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