Morning Commentary: Apollo Commercial details add-on pricing; secondary trading active

By Abigail W. Adams

Portland, Maine, Nov. 7 – Apollo Commercial Real Estate Finance Inc.’s 4.75% senior convertible note due 2022 is undergoing a flurry of trading activity after the company priced a $75 million add-on at 100.5 shortly after the market close on Monday.

The price came at the tight end of talk that ranged from 100.25 to 100.5, according to a market source. The add-on will trade as a single unit with the $230 million outstanding 4.75% notes issued in August.

The notes carry a 10% conversion premium with no call or put options.

Since markets opened on Tuesday, there have been more than 200 trades of the 4.75% convertible due August 2022 compared to only two trades on Monday.

Insulet Corp. also announced on Monday its plan to price $300 million of seven-year convertible senior notes.

Market talk places the coupon at 1.375% to 1.875% with an initial conversion premium between 25% and 30%, according to a market source.

The notes will price at market close.

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