Morning Commentary: Pluralsight’s new convertibles remain in focus; Aceto notes jump

By Abigail W. Adams

Portland, Me., March 8 – New paper remained in focus in the secondary space early Friday with Pluralsight Inc.’s 0.375% convertible notes due 2024 continuing to dominate the secondary market.

There was about $97 million on the tape about one hour into Friday’s session, $19 million of which came from Pluralsight.

The 0.375% notes were changing hands around 100.375 with stock again on the decline.

Pluralsight stock was down to $28.74, a decrease of 0.73%, shortly before 11 a.m. ET.

The notes dominated activity on their market debut on Thursday and saw a 1.25 point dollar-neutral expansion.

Aceto Corp.’s 2% convertible notes due 2020 saw another burst of activity on Friday with the notes jumping after the company received another bid for some of its assets.

The 2% notes jumped 5 points to 50 in active trading, a market source said. More than $8 million of the bonds were on the tape about one hour into Friday’s session.

Aceto announced on Friday that it had entered into a purchase agreement to sell the assets of Rising Pharmaceuticals to Shore Suven Pharma Inc. for $15 million, Prospect News reported.

Aceto filed for Chapter 11 bankruptcy protection in late February. The notes were trading as high as 83 in August but dropped to around 65 after filing for bankruptcy.

The 2% notes saw another burst of activity on March 1 and dropped to the 45 range, which several sources noted as odd.

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