Vishay Intertechnology in focus; YY, Palo Alto Networks active; Uniti recent issue hits new low

By Abigail W. Adams

Portland, Me., July 11 – With no new paper pricing over the past week, stock moves and index additions and subtractions continued to be the driving force of trading activity in the convertibles secondary space, sources said.

Vishay Intertechnology Inc.’s 2.25% convertible notes due 2025 were among the most actively traded issues on Thursday.

The notes were dropping on an outright basis as stock sank after the semiconductor company slashed its outlook.

YY Inc.’s 1.375% convertible notes due 2026 continued to see active trading as the issue was added to the Thomson Reuters Convertibles indexes.

Palo Alto Networks Inc.’s 0.75% convertible notes due 2023 were also active as stock gained on the heels of a completed merger.

Uniti Group Inc.’s recently priced 4% convertible notes due 2024 hit their lowest outright level since pricing on June 26 with the notes now firmly below par.

Vishay’s outlook

Vishay’s 2.25% convertible notes due 2025 were in focus on Thursday as stock sank after the company slashed its second-quarter guidance.

The notes traded down more than 1 point outright to close the day around 91, according to a market source.

The notes saw more than $12 million in reported volume by the end of the session.

Vishay stock closed Thursday at $15.35, a decrease of 4.54%.

Vishay announced after the market close that it was reducing its outlook for the second quarter to revenue of $682 million to $688 million. Its previous forecast was for revenue of $700 million to $740 million.

Analysts had been expecting the Malvern, Pa.-based chipmaker to report revenue of $715 million.

Vishay also announced that it will report earnings on July 30.

YY active

YY’s 1.375% convertible notes due 2026 continued to see active trading in the secondary space.

The notes were changing hands at 101 early in the session and dropped to 100.75 in the afternoon, sources said.

The notes saw $9 million in reported volume by the mid-afternoon.

While the 1.375% convertible notes continued to see active trading, activity surrounding the Guangzhou, China-based global social media platform’s 0.75% convertible notes due 2025 tempered on Thursday.

The 0.75% notes were just under 101 in light volume.

While YY’s equity was up shortly after the opening bell, it quickly came in and closed the day at $68.42, an increase of 1.51%.

YY’s two tranches of convertible notes were in focus on Wednesday with a lot of buying activity prior to their inclusion in the Thomson Reuters Convertibles indexes, sources said.

YY’s 1.375% notes and 0.75% notes due 2025 were added to the index on Thursday.

Palo Alto up outright

Palo Alto Networks Inc.’s 0.75% convertible notes due 2023 were trading up on an outright basis as stock gained.

The 0.75% notes rose about 0.5 point to change hands at 108.5, a market source said.

While active early in the session, activity tempered into the afternoon. The notes saw about $8 million in reported volume.

Palo Alto stock traded as high as $218.73 during Thursday’s session and closed the day at $217.66, an increase of 1.39%.

Stock was on the rise following the completion of the company’s acquisition of cybersecurity startup Twistlock.

Stock traded down following the company’s fiscal third-quarter earnings report in May due to concerns the acquisition would negatively impact fiscal fourth-quarter earnings.

Uniti’s new low

Uniti’s recently priced 4% convertible notes due 2024 hit their lowest outright level on Thursday since the notes priced on June 26.

The 4% notes traded down to 97.5 on Thursday but gained ground to close the day at 98.75.

Uniti stock was volatile on Thursday and traded to a low of $8.76 and a high of $9.84 before closing the day at $9.26, an increase of 2.21%.

The notes jumped on an outright and dollar-neutral basis after pricing. They traded as high as 104 and expanded more than 2 points dollar-neutral.

While the notes have come in on an outright basis, they have maintained their dollar-neutral expansion.

Mentioned in this article:

Palo Alto Networks Inc. NYSE: PANW

Uniti Group Inc. Nasdaq: UNIT

Vishay Intertechnology Inc. NYSE: VSH

YY Inc. Nasdaq: YY

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