Western Digital, DISH convertibles active; Airbnb at par; Silicon Labs gains outright on division sale

By Abigail W. Adams

Portland, Me., April 23 – The convertible secondary space closed out a subdued week quietly with volume light amid a lack of new paper in the space.

The convertible primary market was dormant throughout the week, which sources felt was partly due to earnings season blackouts and partly due to weak market conditions.

However, the convertible secondary space was firmer on Friday with the tone improved as equities snapped back from the previous session’s sell-off, a source said.

With no new paper entering the space, trading activity was driven by stock movements and topical news.

Western Digital Corp.’s 1.5% convertible notes due 2024 had heavy volume as stock gained following competitor Intel’s disappointing earnings report.

DISH Network Corp.’s 3.375% convertible notes due 2026 continued to actively trade as stock again set a fresh high.

Airbnb Inc.’s 0% convertible notes due 2026 broached par during Friday’s session as stock continued to gain momentum.

Silicon Laboratories Inc.’s 0.625% convertible notes due 2025 returned to focus with the notes active and posting gains on an outright basis following news it was selling one of its business units.

Western Digital active

Western Digital’s 1.5% convertible notes due 2024 saw heavy volume on Friday as stock popped following a disappointing earnings report from competitor Intel.

The 1.5% notes were changing hands at 102.75 in the late afternoon.

There was more than $15 million in reported volume.

Western Digital stock traded to a low of $66.01 and a high of $68.43 before closing the day at $68.07, an increase of 2.73%.

The computer hard disk manufacturer and data storage company’s stock gained as competitor Intel’s stock slumped.

Intel stock dropped more than 5% after the company announced its data center group saw its sales drop 20%.

“Looks like Intel’s giving away its market share,” a source said.

More DISH

DISH’s 3.375% convertible notes due 2026 remained active on Friday with the notes continuing to gain as stock set a new 52-week high for the third consecutive day.

The 3.375% notes were initially down on an outright basis with stock off early in the session.

They were changing hands at 102.5 versus an equity price of $41.6 about one hour after the opening bell, a source said.

However, they gained alongside stock as the session progressed and were changing hands at 103.5 in the late afternoon.

While DISH’s 0% convertible notes due 2025 were active and posting large gains throughout the week, they were quiet on Friday.

DISH stock traded to a low of $41.38 and a high of $42.92 before closing the day at $42.48, an increase of 1.24%.

Friday marked the third consecutive day DISH stock has set a new 52-week high.

The satellite broadcaster’s stock has been on a tear since Wednesday when the company announced it was partnering with Amazon Web Services to build out its 5G network.

Airbnb tops par

Airbnb’s 0% convertible notes due 2026 broached par on Friday as the online vacation rental marketplace’s stock broke out of its rout.

The notes were trading on a 97-handle earlier in the week as stock sunk to a recent low.

However, stock gained momentum over the past two sessions.

Airbnb stock traded to a low of $172 and a high of $178.25 before closing the day at $174.25, an increase of 2.07%.

Silicon Labs active

Silicon Lab’s 0.625% convertible notes due 2025 returned to focus on Friday with the notes posting gains on an outright basis alongside stock.

The 0.625% notes rose more than 6 points outright with stock up more than 6%.

They were changing hands at 142.5 versus a stock price of $157.82 early in the session.

However, they came in alongside stock as the session progressed and were trading on a 140-handle in the late afternoon.

Silicon Labs stock traded to a high of $162.28 and a low of $152.45 before closing the day at $154.6, an increase of 6.88%.

Stock popped after the semiconductor manufacturing company announced it was selling its infrastructure and automotive business unit to Skyworks Solutions for $2.75 billion.

The transaction is a positive for Silicon Lab’s equity and convertible notes, a source said.

Mentioned in this article:

Airbnb Inc. Nasdaq: ABNB

DISH Network Corp. Nasdaq: DISH

Silicon Laboratories Inc. Nasdaq: SLAB

Western Digital Corp. Nasdaq: WDC

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