Morning Commentary: Senseonics prices; Oil States strong on debut; First Majestic up dollar neutral

By Abigail W. Adams

Portland, Me., Jan. 26 – Friday began with a new deal pricing, rounding out a week that has seen $925 million of new paper enter the convertibles space.

In a small overnight deal, Senseonics Holdings Inc. priced $50 million of five-year convertible notes prior to the market open on Friday with a coupon of 5.25% and an initial conversion premium of 6.3%.

BTIG, LLC is the bookrunner for the registered deal, which carries a greenshoe of $7.5 million.

The Germantown, Md.-based medical technology company, which is focused on glucose monitoring products for diabetes, went public in 2016. The small-cap company is raising capital to support the commercialization of its flagship product, Eversense, in the United States.

Oil States International, Inc. priced $200 million of five-year senior convertible notes after the market close on Thursday with a coupon of 1.5% and an initial conversion premium of 37.5%, according to a news release.

The deal came at the rich end of talk, which had been set at a coupon of 1.5% to 2% and an initial conversion premium of 32.5% to 37.5%.

While some market sources did not find the deal attractive, due to the credit spread, “people like that one,” a market source said. Oil States’ 1.5% notes were trading north of 103 early in the session with the stock up 1.68%.

First Majestic Silver Corp.’s stock took a hit on Thursday soon after its newly priced 1.875% notes due 2023 made their market debut. While the notes, which were at 100.5 shortly after their debut, weakened later in the afternoon, they were gaining strength on Friday, a market source said.

The notes were trading at 99.25 early in Friday’s session with the stock up 0.84%. While the outright price was below par, the notes were still up about 1 point on a dollar-neutral basis, the source said.

“I see pretty good demand both in the U.S. and in Canada,” the source said about the Rule 144A and Regulations S deal, with both outright and hedge players involved.

First Majestic stock tumbled along with many metal and mining companies on Thursday after president Donald Trump endorsed a strong dollar policy.

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