Morning Commentary: Danimer convertible notes in focus, gain on secondary market debut

By Abigail W. Adams

Portland, Me., Dec. 17 – It was a quiet morning in the convertibles secondary space with a single name dominating the tape – Danimer Scientific, Inc.

Danimer priced an upsized $200 million of five-year convertible notes after the market close on Thursday at par at the midpoint of talk with a coupon of 3.25% and an initial conversion premium of 27.5%.

Price talk was for a coupon of 3% to 3.5% and an initial conversion premium of 25% to 30%.

The greenshoe was also upsized to $40 million.

The initial size of the offering was $175 million with a greenshoe of $26.25 million.

The new paper was putting in a strong performance in the secondary space.

The notes traded up to a 103 handle with stock largely unchanged early in the session.

The notes expanded 3.5 points on a dollar-neutral, or hedged, basis, a source said. However, there were not a lot of swap trades on the tape.

Danimer’s stock was flat to negative early in the session. However, stock turned green as the session progressed.

Danimer’s stock was changing hands at $8.63, an increase of 2.01%, shortly before 11 a.m. ET.

Outside of the new paper, the secondary space was quiet as equity markets struggled to find direction.

While the Nasdaq Composite and Russell 2000 index launched the day deep in the red, they turned positive as the session progressed. The Nasdaq Composite was up 0.36% and the Russell 2000 index was up 0.65% shortly before 11 a.m. ET.

However, the Dow Jones industrial average was down 293 points, or 0.82%, and the S&P 500 index was down 0.33%.

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