Li Auto, Beyond Meat convertible notes continue to gain; John Bean, Realogy active

By Abigail W. Adams

Portland, Me., June 2 – The convertibles primary and secondary spaces were again quiet on Wednesday as both markets saw a slow return from the holiday weekend.

No new deals were announced, and trading activity was subdued with equity benchmarks largely flat after a mixed start to the month.

The Dow Jones industrial average closed the day up 25 points, or 0.07%, the S&P 500 index closed the day up 0.14% and the Nasdaq Composite finished up 0.14%.

Li Auto Inc.’s 0.25% convertibles due 2028 were the most actively traded name in the secondary space with the notes continuing to gain on an outright and dollar-neutral basis.

After dropping below par the previous session, Beyond Meat Inc.’s 0% convertible notes due 2027 reversed course.

The notes were posting gains on an outright and dollar-neutral basis as the plant-based food company’s stock again surged.

John Bean Technologies Corp.’s 0.25% convertible notes due 2026 and Realogy Holdings Corp.’s 0.25% exchangeable notes due 2026, the two most recent issues to price, remained active in the aftermarket, although with little movement in price.

Li Auto gains

Li Auto’s 0.25% convertible notes due 2028 were in focus on Wednesday with the notes continuing to gain on an outright and dollar-neutral basis as the Beijing-based electric vehicle manufacturer’s American Depositary Shares continued their upward momentum.

The 0.25% notes hit their highest outright level since pricing.

They traded as high as 110 early in the session and were changing hands at 109 heading into the market close.

The notes expanded another 0.25 point dollar-neutral, a source said.

Li Auto’s ADRs traded to a high of $25.05 and a low of $23.60 before closing the day at $24.34, an increase of 2.23%.

The once struggling 0.25% notes have surged since the company reported earnings last week.

While earnings were mixed, the company’s equity and convertible notes surged on an upbeat forecast for car sales, with sales expected to reach 10,000 a month by September.

The notes were below par heading into the earnings report.

Beyond Meat returns

Beyond Meat’s 0% convertible notes due 2027 returned to focus with the notes reversing course after Tuesday’s sell-off.

After closing the previous session on a 97-handle, the 0% notes again popped above par.

They were changing hands at 102 heading into the market close on Wednesday.

The notes expanded about 0.25 point dollar-neutral, a source said.

The plant-based food company’s stock traded to a low of $134.59 and a high of $151.36 before closing the day at $149.74, an increase of 10.76%.

The surge in Beyond Meat’s stock on Wednesday comes on a strong trading day for meme stocks.

AMC Entertainment Holdings Inc.’s stock shot up more than 95% during Wednesday’s session as the Reddit army again made their presence known.

Beyond Meat’s stock, which has struggled alongside other growth stocks since March, tanked following the company’s earnings report in mid-May.

However, the company’s stock became the latest to benefit from a Reddit-inspired trading frenzy after CNBC’s Jim Cramer suggested it as a potential target for a short-squeeze late last week.

The borrow on the stock remains stable and any concern about a GameStop-esque short-squeeze in the name has not yet become apparent, a source said.

Recent issues

John Bean Technologies’ 0.25% convertible notes due 2026 and Realogy’s 0.25% exchangeable notes due 2026 remained active in the secondary space although with little movement in price.

John Bean’s 0.25% convertible notes were down about 1 point outright with stock off a more than 2%.

The 0.25% convertible notes were changing hands at 108 versus a stock price of $145.92 early in the session.

John Bean’s stock traded to a high of $149.40 and a low of $144.37 before closing the day at $145.82, a decrease of 2.8%.

Realogy’s 0.25% exchangeable notes due 2026 continued to trade around 102.

Realogy’s stock was largely flat on Wednesday. It traded to a high of $17.88 and a low of $17.51 before closing the day at $17.72, a decrease of 0.39%.

Mentioned in this article:

Beyond Meat Inc. Nasdaq: BYND

John Bean Technologies Corp. NYSE: JBT

Li Auto Inc. Nasdaq: LI

Realogy Holdings Corp. NYSE: RLGY

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