Morning Commentary: Shift Technologies convertible notes on deck; Coinbase active early

By Abigail W. Adams

Portland, Me., May 24 – The convertibles primary market launched one small offering prior to the market open on Monday.

Shift Technologies Inc. plans to price $75 million of five-year convertible notes after the market close on Monday with price talk for a coupon of 4.5% to 5% and an initial conversion premium of 25% to 30%, according to a market source.

While Shift Technologies’ deal was small and not on the radar of sources queried, more new deal activity is expected over the course of the week if market conditions remain strong.

After a choppy week the previous week, equity benchmarks were strong at Monday’s launch with the Dow Jones industrial average up 216 points, or 0.63%, the S&P 500 index up 1.06% and the Nasdaq Composite up 1.39% shortly before 11 a.m. ET.

While markets were strong, activity in the secondary space was muted with $50 million in reported volume about one hour into the session.

Coinbase Global Inc.’s 0.5% convertible notes due 2026 were active with the notes again popping above their discounted issue price.

The 0.5% convertible notes, which priced at 99, were changing hands at 99.75 versus a stock price of $225.05 early in Monday’s session, according to a market source.

Bitcoin was rebounding after a volatile weekend, which saw the cryptocurrency again plummet to $31,000.

Bitcoin was changing hands at $37,770, an increase of 11.85%, shortly before 11 a.m. ET.

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