Morning Commentary: 3D Systems convertible notes hit the aftermarket, expand on debut

By Abigail W. Adams

Portland, Me., Nov. 12 – The last new deal in an active week for the convertibles primary market priced after the market close on Thursday.

As has been the recent trend, the new paper played to heavy demand during bookbuilding with the offering upsizing and talk tightening.

3D Systems Corp. priced an upsized $400 million of five-year convertible notes at par with a coupon of 0% and an initial conversion premium of 42.5%.

Pricing came on top of tightened talk for a coupon of 0% and at the midpoint of tightened talk for an initial conversion premium of 40% to 45%.

Initial talk was for a coupon of 0% to 0.5% and an initial conversion premium of 35% to 40%, according to a market source.

The greenshoe was also upsized to $60 million. The initial size of the offering was $350 million with a greenshoe of $52.5 million.

The new paper was putting in a strong performance in its aftermarket debut early Friday.

The 0% notes traded as high as 105 on an outright basis shortly after the opening bell and saw a large dollar-neutral expansion, a source said.

3D Systems’ stock was changing hands at $25.85, an increase of 2.4%, shortly before 11 a.m. ET.

© 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.