Morning Commentary: Five9 convertibles in focus after shareholders reject Zoom merger

By Abigail W. Adams

Portland, Me., Oct. 1 – Five9 Inc.’s 0.5% convertible notes due 2025 were in focus early in Friday’s session after shareholders rejected the company’s merger with Zoom Video Communications, Inc.

While the notes were active, they were little changed day over day following the news.

The 0.5% convertible notes were changing hands at 136 versus a stock price of $162.28 early in the session, according to a market source.

There was about $17 million in reported volume.

Five9’s stock jumped early in Friday’s session before turning negative alongside the broader markets.

Stock traded as high as $170.73. However, it was changing hands at $158.51, a decrease of 0.79%, shortly before 11 a.m. ET.

While Five9’s 0.25% convertible notes were largely unchanged day over day due to an odd-lot trade the previous session, the notes were trading in the 140 to 141 range early in the week.

In July, Zoom 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.

However, Zoom stock has been on a downward trajectory since the company reported earnings in late August.

While Five9’s stock and convertible notes jumped after the merger was initially announced, Five9 looks good as a stand-alone company, a source said.

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