Morning Commentary: Exact Sciences, Coupa bring new paper to market

By Abigail W. Adams

Portland, Me., Jan. 12 – New paper from Exact Sciences Corp. and Coupa Software hit the market Friday after pricing late Thursday with both notes trading up on their debut, according to market sources.

Coupa priced $200 million in five-year convertible notes at a coupon of 0.375% and an initial conversion premium of 32.5%.

The deal came at the rich end of talk for a coupon of 0.375% to 0.875% and richer than talk for the initial conversion premium of 25% to 30%, according to a market source.

Exact Sciences priced an upsized $600 million in seven-year convertible notes within talk for an issue price of 98.75, a coupon of 1% and fixed conversion premium of 37%.

Price talk had been for an issue price of 98.5 to 99, a fixed coupon of 1% and fixed conversion premium of 37%.

With an upsized deal from Exact Sciences and an initial conversion premium priced richer than talk from Coupa Software, the bookbuilding process for both deals must have gone well, a market source said.

Both notes were up in the gray market, a market source said.

Coupa’s 0.375% notes were at 101 bid early in Friday’s session, according to a market source. Exact Sciences 1% notes were at 101.25 bid, 102 offer, the source said.

Coupa stock was up 1.91% to $34.24, according to a market source. Exact Sciences stock was down 3.34% to $53.22

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