Morning Commentary: Atlas convertible notes active in early trading on acquisition offer

By Abigail W. Adams

Portland, Me., Aug. 5 – It was a quiet morning capping a busy week in the convertibles secondary space with $1.575 billion pricing over three deals and acquisition announcements and earnings sparking activity in outstanding issues.

Atlas Corp. became the latest convertibles issuer to become the subject of acquisition interest with the global asset management firm announcing that it had received a nonbinding proposal to be taken private at a price of $14.45 per share.

The news sent the 3.75% exchangeable notes due 2025, issued by Seaspan Corp., skyrocketing although trading in the issue was limited.

The 3.75% notes jumped 10 points outright to 117 early in the session.

Atlas’ stock jumped to $14.29, an increase of 23.34%, shortly before 11 a.m. ET.

While a boost for the notes, the issue was small an illiquid, a source said.

Atlas priced a $201.25 million issue of the notes at par in December 2020.

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