Morning Commentary: GEO exchangeables price, trade up on debut; Expedia gains continue

By Abigail W. Adams

Portland, Me., Feb. 19 – The last new deal of the week entered the secondary space on Friday.

GEO Corrections Holdings Inc. priced $200 million of five-year notes exchangeable for the GEO Group Inc.’s shares after the market close on Thursday at par with a coupon of 6.5% and an initial exchange premium of 25%.

Pricing came at the cheap end of talk for a coupon of 6% to 6.5% and richer than talk for an initial exchange premium of 20% to 22.5%, according to a market source.

The new paper was not active in the secondary space.

“It was a weird deal from a weird company,” a source said.

However, the notes were performing well in light volume.

They were marked at 103.75 bid, 104.25 offered with stock flat.

GEO’s stock was $7.39, an increase of 0.14%, shortly before 11 a.m. ET.

Meanwhile, Expedia Group Inc.’s 0% convertible notes due 2026 continued to improve in active trading.

The 0% convertible notes due 2026 rose to 107 with stock up early in the session.

The notes expanded 0.375 point dollar-neutral, a source said.

Expedia’s stock was changing hands at $161.21, an increase of 2.86%, shortly before 11 a.m. ET.

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