| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers F > Headlines for Five9, Inc. > News item |
Morning Commentary: Secondary quiet as equities pull back; Five9 convertibles expand
By Abigail W. Adams
Portland, Me., Aug. 31 – It was another slow start to the day in the convertibles secondary space on Tuesday as equities pulled back after broaching fresh records the previous session.
The Dow Jones industrial average was down 23 points, or 0.06%, the Nasdaq Composite was down 0.22% and the S&P 500 index was down 0.10% shortly before 11 a.m. ET.
There was $59 million on the tape about one hour into the session on Tuesday with few names seeing concentrated trading activity, according to a market source.
While volume in the name was light, Five9 Inc.’s 0.5% convertible notes due 2025 tanked outright but saw a large expansion on a dollar-neutral, or hedged, basis as stock sold off alongside Zoom Video Communications Inc.’s stock.
The 0.5% convertible notes fell about 14 points outright.
They were changing hands at 136.375 early in the session.
The notes expanded 3 points dollar-neutral on the move down, a source said.
Five9’s stock traded down to $157.72, a decrease of 14.79%, shortly before 11 a.m. ET.
Stock sold off as Zoom Video’s stock also tanked more than 15% following earnings.
In July, Zoom Video announced it planned to acquire Five9 in an all-stock transaction with Five9 shareholders receiving 0.5533 of a share of Zoom stock for each Five9 share.
The announcement boosted Five9’s stock and convertible notes with Zoom a better credit and a higher vol. stock than Five9.
The deal is expected to close in the first half of 2022.
While the acquisition will prompt a revaluation of Five9’s convertible notes, the market also needs to factor in the potential of the deal falling apart, a source said.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.