Morning Commentary: Proofpoint convertibles in focus on slow morning in secondary space

By Abigail W. Adams

Portland, Me., April 26 – It was another slow start to the week in the convertibles secondary space with trading volume hitting a recent low.

There was $42.6 million in reported volume about one hour into the session with one name dominating the tape.

Proofpoint Inc.’s 0.25% convertible notes due 2024 accounted for the lion’s share of trading volume.

The notes shot up more than 17 points outright on news the company would be taken private.

The notes were changing hands at 125.25 early in Monday’s session.

There was more than $16 million of the bonds on the tape.

Proofpoint stock was trading at $172.98, an increase of 31.26%.

The software company’s stock and convertible notes skyrocketed following news that private equity firm Thoma Bravo was taking the company private in a $12.3 billion transaction.

Proofpoint shareholders will receive $176 per share, according to the terms of the agreement.

“That’s today’s excitement,” a source said.

© 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.