Convertibles round out week quietly; Wix.com tops par; MongoDB, RPM, Citrix active

By Abigail W. Adams

Portland, Me., July 6 – While trading volume saw a marked increase from Thursday, the convertibles space remained quiet on Friday.

There was about $144 million on the tape by late afternoon Friday after trading volume barely peaked above $100 million at roughly the same time on Thursday.

Few names saw concentrated activity.

“Basically, it’s a lot of million here, million there trades,” the source said.

Wix.com Ltd.’s 0% convertible notes due 2023 were among the most active of the day. While the notes made gains on an outright basis, they were seen slightly weaker on a dollar-neutral, or hedged, basis, a market source said.

MongoDB Inc.’s 0.75% convertible notes due 2024 were also approaching par on Friday although the notes were also coming in slightly dollar neutral, a source said.

RPM International Inc.’s 2.25% convertible notes due 2020 continued to see active trading in the secondary space after the company announced a quarterly dividend on Thursday.

Citrix Systems Inc.’s 0.5% convertible notes due 2019, a highly liquid issue, were also among the volume movers of Friday’s session.

“Really, there’s not a whole lot going on,” a market source said.

Wix.com above par

Wix.com’s 0% convertible notes due 2023 were among the most actively traded of Friday’s session. While the notes were making gains on an outright basis, they were weaker dollar neutral, a market source said.

The notes were seen trading north of par early on Friday with stock up to $105.50. The 0% notes were quoted at 100.25 bid, 101 offered later in the afternoon.

Wix.com stock closed Friday at $105.30, an increase of 1.15%.

The notes have largely traded below par since hitting the market on June 22. While the notes at one point traded as low as 97.5 on an outright basis, they have largely maintained about a 1-point expansion dollar neutral.

“It’s all about the stock with this one,” the source said. With a premium of 36%, the notes move on a high delta, the source said.

The notes broke par on July 3 and have traded above since, a market source said.

While the notes climbed outright on Friday, they were losing ground on a dollar-neutral basis. Wix.com stock was $105.65 when the 0% convertible notes priced on June 21.

Stock has traded down since the convertible notes priced.

MongoDB approaches par

MongoDB’s 0.75% convertible notes due 2024 were also gaining on an outright basis on Friday but were coming in dollar neutral, a market source said.

The notes traded north of 99 on Friday with stock up almost 1.5%. However, the notes were coming in 0.25 to 0.375 point dollar neutral. “That’s because of liquidity,” a market source said.

MongoDB’s 0.75% convertible notes have also largely traded below par since hitting the market with stock down.

MongoDB stock closed Friday at $51.91, an increase of 1.43%. Stock was $53.45 when the 0.75% convertible notes priced on June 26.

RPM active again

RPM International’s 2.25% convertible notes due 2020 saw another round of active trading on Friday with the notes again one of the primary volume movers in the secondary space.

They were up slightly on an outright basis to trade just north of 122.75 versus an equity price of $60.21. RPM stock closed Friday at $60.45, an increase of 1.26%.

The notes were largely trading on swap, a market source said.

They have been active since Thursday when RPM announced a quarterly dividend of 32 cents per share payable on July 31 to stockholders of record as of July 17.

Liquid Citrix

Citrix’s 0.5% convertible notes due 2019 were also among the top volume movers of Friday’s session. The notes are a large liquid issue is are a regular on the tape, sources said.

The 0.5% notes continued to trade around parity. They were seen trading just south of 148 with stock at $106.51.

Citrix stock closed Friday at $106.57.

Mentioned in this article:

Citrix Systems Inc. Nasdaq: CTXS

MongoDB Inc. Nasdaq: MDB

RPM International Inc. NYSE: RPM

Wix.com Ltd. Nasdaq: WIX

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