Morning Commentary: Porch convertible notes expand; PAR shares tank ahead of pricing

By Rebecca Melvin

Concord, N.H., Sept. 14 – The new Porch Group Inc. 0.75% convertible notes expanded by about 1.25 points on a dollar-neutral, or hedged, basis after they were released for secondary market trading early Tuesday, according to two market sources.

The new bonds were trading actively and “opened up” in the early going as the underlying shares slipped.

The new Porch convertible was seen trading as high at 101.375 and as low as 99.83, according to Trace data. There was about $68 million of bonds on the tape indicated as having changed hands. That appeared to be the top volume name of the day at 11 a.m. ET.

The Seattle-based software company priced an upsized $385 million of the five-year paper after the market close on Monday with a 0.75% coupon and an initial conversion premium of 32.5%.

Elsewhere, two other names were being watched. The underlying shares of PAR Technology Corp. were getting hit after the company launched an offering of $200 million of new six-year convertible notes after the market close on Monday. The notes were being talked at a coupon of 1.25% to 1.75% and an initial conversion premium of 32.5% to 37.5%.

The underlying stock was down $10.71, or 15.7%, at $57.65 at late morning.

A third name in the market was Jamf Holding Corp., which was planning to price $325 million of five-year convertible notes with price talk for a coupon of 0.125% to 0.625% and an initial conversion premium of 32.5% to 37.5%.

The Jamf stock was down $2.87, or 7.5%, at $35.41 at late morning.

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