3D Systems convertibles hit the aftermarket, expand on debut; Amyris gains; Jamf drops

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 – 3D Systems Corp.’s offering of five-year convertible notes.

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

As has also been the trend, new paper from 3D Systems dominated activity in the secondary space and saw a large dollar-neutral expansion.

3D Systems’ deal brought the weekly tally to $1.53 billion, which priced over four deals.

The new deal activity is expected to intensify in the week ahead with the pipeline packed, sources said.

“The market has definitely been begging for it,” a source said.

Meanwhile, Amyris Inc.’s new 1.5% convertible notes due 2026 remained active with the notes continuing to post gains on an outright and dollar-neutral basis.

However, Jamf Holding Corp.’s 0.125% convertible notes due 2026 dropped on an outright basis as stock plummeted.

3D Systems in focus

New paper from 3D Systems was in demand during bookbuilding and in the aftermarket with the deal upsizing, pricing tight and seeing a large dollar-neutral expansion.

3D Systems 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 early in the session.

They were changing hands at 103.5 versus a stock price of $25.59 in the late afternoon.

The notes expanded upwards of 4.375 points early in the session, a source said. They maintained their large dollar-neutral expansion in the afternoon.

The new paper dominated activity in the secondary space, accounting for $109 million of the $567 million of reported volume in the late afternoon.

3D Systems’ stock traded to a high of $26.03 and a low of $25.35 before closing the day at $25.65, an increase of 1.75%.

Amyris gains

Amyris’ 1.5% convertible notes due 2026 remained active on Friday with the notes making large gains on an outright and dollar-neutral basis.

The 1.5% notes gained more than 2 points outright with stock up 4%.

They were changing hands just shy of 105 versus a stock price of $7.86 in the late afternoon.

The notes expanded another 0.75 point dollar-neutral, a source said.

There was about $27 million in reported volume heading into the market close.

Amyris’ stock traded to a low of $7.66 and a high of $8.05 before closing the day at $8, an increase of 4.44%.

The notes have made large dollar-neutral gains since hitting the aftermarket on Wednesday. The notes were up 2.5 points dollar-neutral on debut and gained about 0.375 point during Thursday’s session.

Jamf drops outright

Jamf Holdings’ 0.125% convertible notes due 2026 dropped on an outright basis as stock tumbled post-earnings.

The 0.125% notes were down about 10 points outright with stock off over 20%.

They were changing hands at par versus a stock price of $32.10 in the late afternoon.

There was $18 million in reported volume.

Jamf’s stock traded to a high of $39.91 and a low of $31.37 before closing the day at $32.14, a decrease of 22.14%.

Jamf reported earnings per share of 1 cent, which was largely in line with expectations. Revenue was $95.62 million versus analyst expectations for revenue of $93.73 million.

While Jamf’s earnings were in line to better than expected, stock tanked after Apple unveiled a new product called Apple Business Essentials.

The new platform poses a competitive threat to Jamf, which is an enterprise management software developer for Apple, the Motley Fool reported.

Mentioned in this article:

3D Systems Corp. NYSE: DDD

Amyris Inc. Nasdaq: AMRS

Jamf Holding Corp. Nasdaq: JAMF

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