Five9 gains; Spirit AeroSystems soars on Boeing takeover talk; DISH notes in focus

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.

Equity indexes were strong alongside Treasuries on Friday as the latest Consumer Price Expenditure report yielded few surprises.

The Dow Jones industrial average closed Friday up 91 points, or 0.23%, the S&P 500 index closed up 0.80%, the Nasdaq Composite index closed up 1.14% and the Russell 2000 index closed up 0.90%.

Five9 Inc.’s recently priced 1% convertible notes due 2029 saw heavy volume on Friday with the notes shooting higher alongside stock.

Spirit AeroSystems, Inc.’s 3.25% exchangeable senior notes due 2028 catapulted into focus mid-session with the notes soaring outright alongside stock on news Boeing was in talks to acquire the company.

DISH Network Corp.’s soon-to-mature 2.375% convertible notes due March 15, 2024 traded up to a 99-handle as the company confirmed it would pay the outstanding $1 billion amount upon maturity.

DISH’s longer-duration convertible notes were active but largely unchanged as parent company EchoStar Corp. issued a going-concern statement and addressed plans to address the looming maturities.

Five9 higher

Five9’s recently priced 1% convertible notes due 2029 saw heavy volume on Friday with the notes shooting higher alongside stock.

The 1% notes were up about 3 points outright with stock up about 2%.

The notes were trading at 102.625 early in the session and rose to 104 heading into the market close.

There was $12 million in reported volume.

Five9’s stock traded to a low of $60.37 and a high of $63.13 before closing at $62.32, up 2.16%.

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

The notes were active on Friday with underwriters recently exercising the greenshoe in full.

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

Spirit AeroSystems soars

Spirit AeroSystems’ 3.25% exchangeable notes due 2028 catapulted into focus mid-session as news broke that Boeing was in talks to acquire the aerostructure manufacturer.

The 3.25% notes jumped 10 points with stock up 15%.

They were trading at 132.125 heading into the market close, according to a market source.

There was $10 million in reported volume.

Spirit AeroSystems’ stock traded to a low of $28.32 and a high of $34 before closing at $32.98, an increase of 15.31%.

News broke mid-session that Boeing was in talks to acquire Spirit AeroSystems, its former unit and current supplier.

Both Boeing and Spirit AeroSystems have been plagued over the past year with quality-control issues.

DISH notes near maturity

DISH’s soon-to-mature 2.375% convertible notes due March 15, 2024 improved on Friday with the company confirming the notes would be paid back upon their looming maturity while also issuing a going-concern statement.

The 2.375% notes added about 1 point to trade up to a 99-handle.

The notes were changing hands in the 99.5 to 99.75 context, a source said.

Due to their incredibly short duration, the yield wavered between 11.5% and 20.25% with the small price movement.

DISH’s longer-duration notes were largely unchanged following a large earnings miss.

The 0% convertible notes due 2025 were wrapped around 73 in active trade.

The 3.375% convertible notes due 2029 continued to trade at 59.5 with the yield 27%.

While DISH parent company EchoStar reported a large earnings miss, stock pared its early losses following the earnings conference call.

EchoStar’s stock traded to a low of $11.83 and a high of $13.70 before closing at $13.22, up 0.84%.

While the company issued a going-concern statement and raised doubts about its ability to cover its 5.875% senior notes due Nov. 15, 2024, the company is actively pursuing financing and restructuring options.

The company recently attempted debt exchanges for its outstanding convertible notes and four series of senior notes, which were canceled due to investor pushback.

Mentioned in this article:

EchoStar Corp. Nasdaq: SATS

Five9 Inc. Nasdaq: FIVN

Spirit AeroSystems Inc. NYSE: SPR

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