Morning Commentary: SailPoint Technologies convertible notes active on acquisition

By Abigail W. Adams

Portland, Me., April 11 – It was another quiet start in the convertibles secondary space on Monday as equity markets extended declines.

The Dow Jones industrial average was down 127 points, or 0.46%, the S&P 500 index was down 1.12%, the Nasdaq Composite was down 1.8% and the Russell 2000 index was down 0.09% shortly before 11 a.m. ET.

There was $50 million in reported convertibles trading volume about one hour into the session with few names seeing concentrated trading activity.

SailPoint Technologies Holdings Inc.’s 0.125% convertible notes due 2024 were active and making large gains on an outright basis on news the company would be taken private in an acquisition.

The 0.125% convertible notes shot up 45 points to double par.

The notes were changing hands at 226.75 versus an equity price of $63.91 early in the session, according to a market source.

There was about $6 million in reported volume.

SailPoint’s stock was trading at $63.97, an increase of 28.99%, shortly before 11 a.m. ET.

The convertible notes were in focus on news private equity firm Thoma Bravo would acquire the cyber security company for $65.25 per share in a deal valued at $6.9 billion.

The deal is expected to close in the second half of 2022.

© 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.