Bloom Energy upsizes, trades below par on debut; Alteryx expands as stock gets crushed

By Abigail W. Adams

Portland, Me., Aug. 7 – The first new paper in nearly two weeks entered the secondary space on Friday.

Bloom Energy Corp. priced an upsized $200 million of five-year convertible notes after the market close on Thursday.

While the new paper dropped below par, it was expanding dollar-neutral.

Meanwhile, there were some large price movements in the secondary space on Friday as convertible issuers saw their equity soar or get crushed following their earnings reports.

Illumina Inc.’s convertible notes were active and sinking outright but were unchanged to improved dollar-neutral as stock sank.

Alteryx Inc.’s convertible notes dropped outright but expanded dollar-neutral as stock got hammered.

Datadog Inc.’s 0.125% convertible notes due 2025 were down outright and contracting dollar-neutral amid the sell-off in its stock.

Bloom Energy

Bloom Energy priced an upsized $200 million of five-year convertible notes after the market close on Thursday at the rich end of talk with a coupon of 2.5% and an initial conversion premium of 25%.

Price talk was for a coupon of 2.5% to 3% and an initial conversion premium of 20% to 25%.

The greenshoe was also upsized to $30 million.

The initial size of the offering was $135 million with a greenshoe of $15 million.

The deal was wall-crossed with four major initial buyers, a source said.

While the new paper was not actively traded with the deal tightly allocated, the notes dropped below par on their secondary market debut.

The 2.5% notes were seen at par bid with some weakness in stock early in the session, a source said.

They continued to drop as the session progressed, trading as low as a 97-handle.

However, the notes traded off their lows and were marked at 98 bid, 98.75 offered in the late afternoon.

While down outright, the notes were up about 0.5 point dollar-neutral.

The majority of trades were done on swap, a source said.

Bloom Energy stock traded to a high of $13.03 and a low of $12.16 before closing the day at $12.54, a decrease of 3.24%.

Illumina active

Illumina’s convertible notes were active and down outright but unchanged to improved dollar-neutral as stock sold off following an earnings miss.

The company’s 0.5% convertible notes due 2021 dropped 18 points outright to 142 with stock down more than 12%.

However, the notes were largely moving inline dollar-neutral, a source said.

The 0.5% notes were active with more than $24 million in reported volume.

While volume was comparatively light, Illumina’s 0% convertible notes due 2023 were down outright but up dollar-neutral.

The 0% convertible notes dropped about 6 points outright to 109.

However, sources saw the notes expand 0.5 point to 1 point dollar-neutral, a source said.

Illumina stock traded to a high of $360.69 and a low of $343 before closing the day at $355.66, a decrease of 10.94%.

Stock tanked after the genetic analytics company missed on both the top and bottom lines in its second-quarter earnings report.

Illumina reported earnings per share of 62 cents versus analyst expectations for earnings of 67 cents.

Revenue was $633 million versus analyst expectations for revenue of $679.6 million.

Alteryx up on swap

Alteryx’s convertible notes dropped outright but expanded dollar-neutral as stock got crushed during Friday’s session.

The 0.5% convertible notes due 2024 sank more than 16 points outright to 103 in the late afternoon.

The 1% convertible notes due 2026 dropped 20 points outright to 102.5.

Both tranches expanded 1.5 points dollar-neutral, a source said.

Alteryx stock traded to a high of $130.50 and a low of $117.35 before closing the day at $121.38, a decrease of 28.13%.

The computer software company’s stock got crushed despite a second-quarter earnings beat.

Alteryx reported earnings per share of 2 cents versus analyst expectations for a loss of 14 cents.

Revenue was $96.2 million versus expectations for revenue of $94.11 million.

However, stock sank on a dim forecast for the future.

Alteryx forecast $111 to $115 million in revenue for the third quarter and an earnings per share of nine to 14 cents versus analyst expectations for revenue of $119.3 million and earnings per share of 13 cents.

Datadog contracts

Datadog’s 0.125% convertible notes due 2025 dropped on an outright and dollar-neutral basis following its second-quarter earnings report.

The 0.125% notes were down 10 points outright to 113.25 in the late afternoon.

They were contracting about 0.5 point on the move down, a source said.

Datadog stock traded to a high of $83.75 and a low of $74.11 before closing the day at $75.28, a decrease of 16.36%.

The cloud monitoring company reported second quarter earnings per share of 5 cents versus analyst expectations of earnings per share of 1 cent.

Revenue was $140 million versus analyst expectations for revenue of $135 million.

While earnings beat expectations, the results did not justify the stock’s 150% surge since January and investors were cashing in on their profits, Motley Fool reported.

Mentioned in this article:

Alteryx Inc. NYSE: AYX

Bloom Energy Corp. NYSE: BE

Datadog Inc. Nasdaq: DDOG

Illumina Inc. Nasdaq: ILMN

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