Morning Commentary: New Synaptics surges; tech names in focus; Red Hat jumps with shares

By Rebecca Melvin

New York, June 21 – Synaptics Inc.’s newly priced 0.5% convertibles moved higher in active trade early Wednesday after the San Jose, Calif.-based computer hardware company priced an upsized $500 million of the five-year notes within talk.

The new Synaptics convertibles were last at 105 bid, 105.5 offered in the secondary market, a syndicate source said.

On a swap, or dollar-neutral, basis, the issue was up about 4.5 points, the syndicate source said. Synaptics common shares moved higher from the open, trading last around $56.80, which was up $1.73, or 3%.

The strong reception for the overnight deal, which priced late Tuesday, is positive for the market, the syndicate source said.

Other technology names were also active in the convertibles secondary market.

Red Hat Inc.’s 0.25% convertibles jumped more than 9 points on an outright basis, in tandem with a surge in the underlying shares, after the open-source software products company reported better-than-expected earnings and raised guidance.

The Red Hat convertibles were last at 142.9, according to Trace data. Red Hat shares were up $8.47, or 9.4%, at $98.35 at late morning.

Intel Corp.’s sister convertibles were both active, with the technology bellwether’s 3.493% convertibles due 2035 printing little changed at 131.6 and the 3.25% convertibles due 2039 trading down a couple of points at 167.6. Intel shares dropped at the open but recovered some ground by mid-morning, last seen down 60 cents, or 1.7% at $34.25.

Meanwhile, Chesapeake Energy Corp.’s 2026, 5.5% convertibles were flat to lower, printing at 92.4 against a lower stock price.

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