Morning Commentary: Five9 convertible notes in focus in early secondary trading

By Abigail W. Adams

Portland, Me., March 1 – The convertibles secondary space continued to settle early Friday after another high-volume week of issuance sparked heavy volumes over the past few sessions.

While the flurry of activity surrounding recent deals continued to dissipate, those deals remained a driver of activity in the space.

Equity indexes continued to notch nominal gains with Treasuries strong on Friday as the latest Consumer Price Expenditure report yielded few surprises.

The Dow Jones industrial average was up 40 points, or 0.10%, the S&P 500 index was up 0.34%, the Nasdaq Composite index was up 0.45% and the Russell 2000 index was up 0.75% shortly before 11 a.m. ET.

There was $105 million in reported volume about one hour into the session with a wide range of names in play.

Five9 Inc.’s recently priced 1% convertible notes due 2029 were the most actively traded issue early in the session with underwriters recently exercising the greenshoe in full.

The 1% notes were climbing higher alongside stock.

They were up about 1 point outright to trade at 102.625 with stock up about 1.5%.

There was $7 million in reported volume.

Five9’s stock was changing hands at $61.95, an increase of 1.56%, shortly before 11 a.m. ET.

The 1% notes made strong gains on their trading debut on Wednesday but came in the previous session.

The notes priced at par on Tuesday with the exercise of the greenshoe lifting the total issue size to $747.5 million.

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