DISH convertibles rise on Amazon deal chatter; RealPage, Atlas Air deals eyed

By Stephanie N. Rotondo

Seattle, May 17 – DISH Network Corp.’s convertible bonds were taking center stage on Wednesday amid chatter that Amazon was interested in the company’s massive wireless spectrum inventory.

However, it is unclear exactly where Amazon’s interest lies, especially as DISH itself has been vague about what it hopes to do with its $21 billion in airwaves.

Still, DISH’s convertible debt – as well as its equity – was faring well.

A market source called the 3.375% convertible notes due 2026 up about 2 points at 121, while the 2.375% convertible notes due 2024 were pegged at 104.25.

At another desk, the 3.375% paper was pegged at 121 bid, 121.5 offered. While that was slightly off the day’s highs, it was still 2 points better.

As for the 2.375% convertibles, they closed in a 104 to 104.5 context, up from 102.375.

The underlying stock was up 50 cents at $62.77.

The rumored wireless partnership could be announced later this week at a satellite-TV tradeshow.

Meanwhile, the new issue calendar was being eyed as the market prepared for two new issues to price after Wednesday’s close.

Details of both were unavailable as of 6:30 p.m. ET.

RealPage Inc. was slated to bring a $300 million Rule 144A offering of convertible senior notes due 2022, with the yield talked in a 1% to 1.5% range and an initial conversion premium of 27.5% to 32.5%.

Morgan Stanley & Co. LLC and BofA Merrill Lynch are running the books.

Atlas Air Worldwide Holdings Inc. was meantime selling $250 million of convertible senior notes due 2024 via an underwritten public offering.

Price talk on that deal is 1.375% to 1.875%, with an initial conversion premium of 32.5% to 37.5%.

Morgan Stanley, BNP Paribas and Citigroup Global Markets Inc. are the joint bookrunners.

Ahead of pricing, both companies saw their stock prices getting slammed.

RealPage’s equity declined $1.85, or 5.32%, to $32.90. Atlas’ shares were down $3.55, or 7.15%, at $46.10.

Mentioned in this article:

Atlas Air Worldwide Holdings Inc. Nasdaq: AAWW

DISH Network Corp. Nasdaq: DISH

RealPage Inc. Nasdaq: RP

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