Morning Commentary: Convertibles active; Pioneer Natural Resources, Shift4 in focus

By Abigail W. Adams

Portland, Me., Dec. 7 – The convertibles secondary space launched the week with heavy trading volume, which has been a theme over the past week.

There was more than $100 million on the tape less than one hour into the session with volume quickly climbing, a source said.

However, few names saw concentrated activity with a wide berth to the trading.

Pioneer Natural Resources Co.’s 0.5% convertible notes due 2025 topped the volume chart early in the session.

The notes were changing hands just shy of 129 versus an equity price of $111.48, according to a market source.

While the notes saw high volume with $7 million on the tape, there were only three trades.

Pioneer Natural Resources’ stock was changing hands at 112.33, a decrease of 1.52%.

The oil and gas company will hold a special shareholders meeting on Saturday to seek approval for its planned acquisition of Parsley Energy Inc.

Pioneer announced its plans to acquire Parsley in late October in an all-stock deal where Parsley stockholders would receive 0.1252 of a share of Pioneer Natural Resources stock for each share of Parsley stock, according to a company news release.

Meanwhile, Shift4 Payments Inc.’s 0% convertible notes due 2025, the most recent new deal to hit the convertibles secondary space, continued to gain on an outright basis as stock continued its upward momentum.

The 0% notes traded up to 110 early Monday, a source said.

Shift4’s stock was changing hands at $63.26, an increase of 1.16%, shortly before 11 a.m. ET.

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