Morning Commentary: Progress Software prices upsized offering, flat on debut

By Abigail W. Adams

Portland, Me., April 9 – The last new deal of the week hit the convertible secondary space on Friday. Progress Software Corp. priced an upsized $325 million of five-year convertible notes after the market close on Thursday at par with a coupon of 1% and an initial conversion premium of 27.5%, according to a market source.

Pricing came at the midpoint of talk for a coupon of 0.75% to 1.25% and an initial conversion premium of 25% to 30%, according to a market source.

The notes fell flat on an outright and dollar-neutral basis in the aftermarket.

The notes were trading in a range of 99.25 and 100.25 on an outright basis with stock off early in the session.

They were flat dollar-neutral, a source said.

Progress Software stock was changing hands at $44.64, a decrease of 0.67%, shortly before 11 a.m. ET.

Outside of the new issue, the secondary space was quiet with few names seeing more than $5 million in reported volume.

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