Liberty Media exchangeable notes reclaim par; Amphastar gains continue; Sea active

By Abigail W. Adams

Portland, Me., Sept. 14 – The convertibles primary market remained quiet on Thursday with the window of opportunity for new issuance drawing to a close.

The lack of new deal activity over the course of the week was a surprise to sources who had expected an active pace after the record-setting previous week.

However, there remains a robust calendar with a heavier pace of issuance expected in the coming weeks before the third quarter ends.

Meanwhile, the secondary space was relatively quiet and flat on Thursday despite a strong day for equities.

The Dow Jones industrial average closed Thursday up 332 points, or 0.96%, the S&P 500 index closed up 0.84%, the Nasdaq Composite index closed up 0.81% and the Russell 2000 index closed up 1.35%.

Activity surrounding Amphastar Pharmaceuticals Inc.’s new 2% convertible notes due 2029, the sole deal to clear the primary market this week, tempered on Thursday.

However, the notes continued to log outright gains after a strong start in the aftermarket.

Liberty Media Corp.’s recently priced 2.375% exchangeable notes for Live Nation Entertainment Inc.’s stock saw renewed attention with the notes topping par for the first time since hitting the aftermarket.

While the notes made outright gains, they were moving in line dollar-neutral.

Sea Ltd.’s 0.25% convertible notes due 2026 were active on Thursday although with little movement in price.

Amphastar day two

While activity surrounding Amphastar’s 2% convertible notes due 2029 tempered their second day in the secondary space, the notes continued to log gains.

The 2% notes gained about 0.75 point outright with stock up 1.5%.

They were changing hands at 101.625 in the late afternoon, according to a market source.

The notes largely moving in line dollar-neutral, although they maintained the large expansion made on their secondary market debut on Wednesday.

There was $5 million in reported volume.

Amphastar’s stock traded to a low of $45.37 and a high of $48 before closing at $47.07, up 1.66%.

The 2% notes saw a strong start in the aftermarket with the notes expanding about 1.25 points dollar-neutral, a source said.

Liberty Media tops par

Liberty Media’s recently priced 2.375% exchangeable notes saw renewed attention on Thursday as the notes popped above par for the first time since hitting the aftermarket.

The notes traded up 1 point outright to 100.5 early in the session.

They continued to rise alongside stock and were seen at 101.5 in the late afternoon.

While improved outright, the notes were moving in line dollar-neutral, a source said.

There was $7 million in reported volume.

Live Nation’s stock traded to a low of $81.49 and a high of $85.20 before closing at $85.01, an increase of 3.07%.

The 2.375% exchangeable notes have underperformed since hitting the aftermarket on Sept. 7 with the notes largely trading on a 99-handle and contracting dollar-neutral.

Sea active

Sea’s 0.25% convertible notes due 2026 were among the most actively traded names in the secondary space on Thursday although with little movement in price.

The notes were trading around 79.5 with the yield about 8.125% throughout the session, a source said.

There was $25 million in reported volume.

While not as active, Sea’s 2.375% convertible notes due 2025 gained about 0.5 point outright.

The notes were trading at 93.375 in the late afternoon with the yield about 5.625%.

The high-premium notes are not equity sensitive and trade largely for their yield.

However, Sea’s American Depositary Shares closed Thursday at $39.89, an increase of 2.2%.

The 2.375% convertible notes were dropped from the Refinitiv convertible indices on Wednesday.

Mentioned in this article:

Amphastar Pharmaceuticals Inc. Nasdaq: AMPH

Live Nation Entertainment Inc. NYSE: LYV

Sea Ltd. NYSE: SE

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