Morning Commentary: Booking Holdings, Health Catalyst convertibles price, gain outright

By Abigail W. Adams

Portland, Me., April 9 – The convertible primary market rounded out an active week with two additional deals pricing, bringing the weekly tally to $2.02 billion.

Booking Holdings Inc. priced $750 million of five-year convertible notes and Health Catalyst Inc. priced an upsized $200 million of five-year convertible notes after the market close on Wednesday.

The new paper dominated activity in the secondary space with both skyrocketing on an outright basis as stocks jumped on a strong day for equities.

Despite another dismal jobs report with 6.6 million people filing for unemployment benefits last week, equities continued to rally on additional stimulus from the Federal Reserve.

Booking dominates

Booking Holdings priced $750 million of five-year convertible notes at the rich end of revised price talk with a coupon of 0.75% and an initial conversion premium of 37.5%.

Talk had been tightened to a coupon of 0.75% and an initial conversion premium of 35% to 37.5% from initial price talk for a coupon of 0.75% to 1.25% and an initial conversion premium of 27.5% to 32.5%, according to a market source.

The new paper dominated activity in the secondary space and jumped on an outright basis.

The 0.75% notes traded as high as 107.75 early in the session with stock up more than 2%.

The notes saw more than $110 million in reported volume.

Booking Holdings’ outstanding convertible notes were also active.

The 0.9% convertible notes due 2021 traded up to 99.75 with about $16 million in reported volume, according to a market source.

The 0.35% convertible notes due 2020 traded up to 111.625 with $14 million in reported volume.

Booking Holdings stock was $1,438.64, an increase of 4.36%, shortly before 11 a.m. ET.

Health Catalyst rises

Health Catalyst priced an upsized $200 million of five-year convertible notes after the market close on Wednesday at par at the rich end of talk with a coupon of 2.5% and an initial conversion premium of 27.5%.

Price talk was for a coupon of 2.5% to 3% and an initial conversion premium of 22.5% to 27.5%, according to a market source.

The new paper traded as high as 106 shortly after the opening bell. However, the majority of prints were between 104 to 105, a source said.

The 2.5% notes saw more than $51 million in reported volume.

Health Catalyst stock traded up to $24.44, an increase of 1.85%, shortly before 11 a.m. ET.

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