High trade volume for Intel continues; Everbridge, Square, Array make gains

By Abigail W. Adams

Portland, Me., Nov. 22 – Intel Corp.’s 2.95% and 3.25% convertible notes continued to dominate trading activity in a quiet pre-Thanksgiving session.

The notes accounted for $28.05 million of the $198.28 million traded by late afternoon, with market sources expressing surprise about the continued activity.

Square Inc.’s 0.375% convertible notes due 2022 continued their upward momentum, attracting increased attention as its stock also made gains.

There were few trades of Everbridge Inc.’s recently issued 1.5% convertible notes due 2022 and Array BioPharma, Inc.’s recently issued 2.65% convertible notes due 2024. However, both notes made gains in the trades that took place.

More Intel

Heavy trading volume by dollar amount continued for Intel’s sister convertible notes in the fourth full trading session since the company announced it would redeem its 2.95% convertible notes on Dec. 18.

The notes have been busy in every session since the semiconductor company exercised the call option.

“I’m surprised it’s trading as often as it is,” a market source said. “Everyone should know where they want to be by now.”

The 2.95% convertible notes traded between a high of 167.17 and low of 164.5 before closing the day at 166.042, according to Trace data. The 3.25% convertible notes due 2039 traded between a high of 215.54 and low of 213.5 before closing the day at 214.77.

Intel stock was down slightly at market close at $44.64, a decrease of 0.67%. Unless Intel stock decreases substantially, little is being gained by the trading activity, the source observed.

Square’s upward march

Square’s 0.375% convertible notes due 2039 were among the most hotly traded in an otherwise sluggish day on the secondary market. Trades ranged from a low of 205.584 to a high of 215.983 before closing the day at 215.819.

Wednesday’s closing trade is a 7 point increase from Tuesday. The continued growth of Square stock is spurring the trading activity in the 0.375% convertible notes, a market source said.

Square stock closed the day at $48.81, a 1.56% increase. Square stock has grown 252% in 2017 alone and 400% since its $9 IPO in November 2015.

Some analysts predict the stock is heading for a crash after coming too far too fast. Others see Square’s growth momentum continuing long into the future.

Everbridge, Array trade up

Everbridge’s recently issued 1.5% convertible notes due 2022 climbed almost 3 points to 107.36 despite trading only four times during Wednesday’s session.

The notes traded up to 4 points above par when they made their market debut on Nov. 16, but slumped at market close Nov. 17.

Trading activity in the notes increased after underwriters BofA Merrill Lynch and Credit Suisse Securities (USA) LLC fully exercised the $15 million greenshoe option, lifting the size of the deal to $115 million.

The notes have made steady gains throughout the week and closed Wednesday at new heights. Everbridge stock increased slightly to close the day at $27.89, up 0.04%.

Array’s recently issued 2.65% convertible notes due 2024 also reached new heights in trading on Wednesday despite few trades. The notes gained almost 2 points from Tuesday’s close to reach 105.544 by late afternoon, according to a market source.

Array stock closed the day at $11.33, an increase of 0.09%.

The company issued the new notes in an exchange offer which swapped old convertibles for the new notes and common stock.

Mentioned in this article:

Intel Corp. Nasdaq: INTC

Square Inc. NYSE: SQ

Everbridge Inc. Nasdaq: EVBG

Array BioPharma Inc. Nasdaq: ARRY

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