NeoGenomics opens convertible primary market; iQIYI, Pinduoduo gain; NextEra tops par

By Abigail W. Adams

Portland, Me., Jan. 5 – The convertibles primary market launched the first deal of the New Year on Tuesday.

NeoGenomics Inc. plans to price $250 million seven-year convertible notes after the market close on Wednesday with price talk for a coupon of 0.25% to 0.75% and an initial conversion premium of 30% to 35%, according to a market source.

BofA Securities Inc., Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC are bookrunners for the registered offering, which carries a greenshoe of $37.5 million.

The offering launches what is expected to be an active calendar in the coming weeks.

Meanwhile, the secondary space saw another active session with $94 million on the tape about one hour into the session and more than $700 million on the tape heading into the market close.

“People are putting money to work right away,” a source said.

The overall market was improved on Tuesday as equities recovered from Monday’s sell-off.

Several deals which priced in the final month of the year and initially struggled in the aftermarket were posting gains in the New Year.

iQIYI Inc.’s 4% convertible notes due 2026 and NextEra Energy Partners LP’s 0% convertible notes due 2025 were both improved on an outright basis on Tuesday after closing out last year below par.

Pinduoduo Inc.’s 0% convertible notes due 2025 were posting gains on an outright basis as the Shanghai-based e-commerce company’s ADSs broke out to a new 52-week high.

iQIYI gains

iQIYI’s 4% convertible notes due 2026 were posting gains on an outright basis on Tuesday.

The notes were changing hands at 102 in the late afternoon.

iQIYI’s ADSs traded to a high of $18.66 and a low of $17.93 before closing the day at $18.64, an increase of 3.33%.

The 4% notes broke par on Monday after trading as low as 97 their initial days in the aftermarket.

iQIYI priced an $800 million issue of the 4% notes on Dec. 17.

Pinduoduo’s new high

Pinduoduo’s 0% convertible notes due 2025 were also on the rise on an outright basis as stock broke out to a new 52-week high.

The 0% notes gained 7 points outright with stock up more than 12%.

The notes were changing hands at 127.25 heading into the market close.

Pinduoduo’s ADSs traded to a low of $171.13 and set a new 52-week high of $187.45 before closing the day at $187.20, an increase of 12.24%.

Pinduoduo’s ADSs have been on a tear over the past few weeks as competitor Alibaba Group Holding Ltd. has come into crosshairs with China’s regulatory authorities.

China’s antitrust probe of Alibaba, announced around Dec. 24, sent Pinduoduo’s ADSs soaring.

The company’s upward momentum was further supported on Tuesday by the New York Stock Exchange rescinding its decision to delist some of China’s telecom companies.

The delisting announcement was made to comply with an executive order prohibiting investment in Chinese companies that support its military and intelligence services.

NextEra tops par

NextEra Energy Partners’ 0% convertible notes due 2025 topped par for the first time since pricing.

The 0% notes traded as high as 101 early in Tuesday’s session, according to a market source.

NextEra’s stock traded to a high of $70.63 and a low of $67.22 before closing the day at $70.17, an increase of 4.7%.

The 0% notes have largely languished below par since pricing, trading as low as 96 during their initial days in the market.

NextEra priced a $600 million issue of the 0% convertible notes at par on Dec. 1.

Mentioned in this article:

iQIYI Inc. Nasdaq: IQ

NeoGenomics Inc. Nasdaq: NEO

NextEra Energy Partners LP NYSE: NEP

Pinduoduo Inc. Nasdaq: PDD

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.