SmileDirectClub convertibles gain; Nutanix notes trade down outright; Sea, DISH active

By Abigail W. Adams

Portland, Me., Sept. 17 – The convertibles secondary space saw a slow end to the week with volume in the space light on a red day for equities.

Following a choppy week, the Dow Jones industrial average closed the day down 166 points, or 0.48%, the S&P 500 index finished down 0.91%, the Nasdaq Composite closed down 0.91% and the Russell 2000 index was 0.01% lower.

There was almost $100 million in reported volume about one hour into the session and $410 million on the tape about one hour before the market close.

However, few names saw concentrated trading activity.

SmileDirectClub Inc.’s 0% convertible notes due 2026 were among the most actively traded names in the space with the notes making gains on an outright basis as stock popped, which many attributed to a coordinated short squeeze.

Nutanix Inc.’s new 0.25% convertible notes due 2027 remained active although the notes gave back some of their outright gains as stock dropped alongside the broader market.

Sea Ltd.’s 0.25% convertible notes due 2026 and DISH Network Corp.’s 0% convertible notes due 2025 were also active although with little movement in price.

SmileDirectClub active

SmileDirectClub’s 0% convertible notes due 2026 were in focus and making gains on an outright basis as stock popped due to a short squeeze.

The 0% convertible notes were up 4 points outright as stock rose more than 10%.

The 0% convertible notes were changing hands at 75.75 versus a stock price of $7.41 shortly before 11 a.m. ET. They continued to trade on a 75-handle as the session progressed.

The notes were seen changing hands at 75.25 versus a stock price of $6.62 in the late afternoon.

There was about $20 million in reported volume.

SmileDirectClub’s stock traded to a high of $7.42 and a low of $6.35 before closing the day at $6.70, an increase of 11.67%.

The company has been the target of a coordinated short-squeeze in recent sessions.

Nutanix lower

Nutanix’s new 0.25% convertible notes due 2027 remained active with the notes giving back some of their outright gains as stock came in.

The 0.25% convertible notes were down a little more than 1 point outright with stock off about 2%.

The notes were changing hands at 101.875 versus a stock price of $40.94 in the late afternoon.

There was about $18 million in reported volume.

Nutanix’s stock traded to a high of $42.35 and a low of $40.73 before closing the day at $41.18, a decrease of 2.07%.

The notes, which priced as part of an exchange, made large gains on an outright and dollar-neutral basis on their aftermarket debut.

The 0.25% notes rose about 3.5 points dollar-neutral on Thursday.

Sea, DISH in focus

Sea’s 0.25% convertible notes due 2026 and DISH’s 0% convertible notes due 2025 were among the most actively traded issues on an otherwise slow day for the convertibles secondary space.

However, the notes saw little movement in terms of price.

Sea’s 0.25% convertible notes were changing hands at 103.5 versus an equity price of $337.37 in the late afternoon. There was about $18 million in reported volume.

Sea’s American Depositary Shares traded to a low of $334.94 and a high of $347.44 before closing the day at $339.81, a decrease of 1.03%.

DISH’s 0% convertible notes due 2025 were changing hands at 117.875 versus a stock price of $42.52 in the late afternoon.

There was about $12 million in reported volume.

DISH’s stock traded to a high of $43.13 and a low of $42.32 before closing the day at $42.48, a decrease of 0.61%.

Mentioned in this article:

DISH Network Corp. Nasdaq: DISH

Nutanix Inc. Nasdaq: NTNX

Sea Ltd. NYSE: SE

SmileDirectClub Inc. Nasdaq: SDC

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