Morning Commentary: Wix.com prices, trades up in high-volume trading

By Abigail W. Adams

Portland, Me., June 22 – New paper from Wix.com Ltd. was in focus on Friday with the notes in demand during book building and in the secondary market.

Wix.com priced an upsized $385 million of five-year convertible notes after the market close on Thursday at the rich end of talk with a coupon of 0% and an initial conversion premium of 35%.

Price talk had been for a coupon of 0% to 0.5% and an initial conversion premium of 30% to 35%.

The deal was increased from $350 million. The greenshoe was also increased to $57.8 million from $52.5 million.

The notes “traded right up,” a market source said. “They were well priced to go out the door.”

The notes were seen trading as high as 103 with stock up early in the session but dropped down to the 101 level as stock dropped off about 1%.

The new 0% notes dominated trading activity in the secondary space, accounting for nearly half of the $121 million in trading volume on the tape early in the session.

The 0% notes also accounted for nearly half of the number of trades on the tape early Friday. Of the 117 trades that took place, 67 were of Wix’s new paper.

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