Radius convertibles on tap; Upstart hits new heights; Match Group, Airbnb up outright

By Abigail W. Adams

Portland, Me., Sept. 7 – The primary market returned to action on Tuesday with one new offering in the works.

Radius Global Infrastructure Inc. plans to price $200 million of five-year convertible notes after the market close on Wednesday with price talk for a coupon of 2% to 2.5% and an initial conversion premium of 30% to 35%, according to a market source.

Morgan Stanley & Co. LLC (lead left) and Goldman Sachs & Co. LLC are joint bookrunners for the Rule 144A offering, which carries a greenshoe of $30 million.

There is an active pipeline of deals, sources said.

However, the floodgates are not expected to fully open until mid- to late September.

Meanwhile, it was a quiet return from the Labor Day weekend for the convertible bond market with many accounts out in celebration of the Jewish New Year.

Equity markets were mixed on Tuesday.

The Dow Jones industrial average closed the day down 270 points, or 0.76%, the S&P 500 index closed the day down 0.34%. However, the Nasdaq Composite closed the day up 0.07%.

There was $57 million in reported volume about one hour into the session and $400 million in reported volume about one hour before the market close.

Upstart Holdings Inc.’s 0.25% convertible notes due 2026 hit their highest outright level since pricing as stock again set a new 52-week high during Tuesday’s session.

Match Group Inc.’s 0.875% convertible notes due 2026 and Airbnb Inc.’s 0% convertible notes due 2026 were also posting gains on an outright basis on a strong day for the companies’ shares.

Upstart strengthens

Upstart Holdings’ 0.25% convertible notes due 2026 hit their highest outright level since pricing with stock again setting a new 52-week high during Tuesday’s session.

The 0.25% convertible notes gained more than 5 points outright with stock up over 8%.

They were changing hands at 121.625 versus a stock price of $257.85 early in the session.

They continued to rise as the session progressed and traded as high as 123.625 versus a stock price of $270.33 in the late afternoon.

There was about $8 million in reported volume.

Upstart’s stock traded to a low of $249.10 and a new 52-week high of $271 before closing the day at $262.70, an increase of 6.23%.

Stock surged after Atlantic Securities initiated coverage on the artificial intelligence powered lending platform with an overweight rating and a price target of $290.

Upstart was one of the last deals to price before the primary market went dormant. The company priced a $661.25 million issue of the 0.25% notes at par on Aug. 17.

Match Group gains

Match Group’s 0.875% convertible notes due 2026 gained on an outright basis as stock jumped following news that the company would be added to the S&P 500 index.

The notes were up more than 10 points outright as stock gained more than 7%.

The 0.875% notes were changing hands just shy of 190 versus a stock price of $158.85 early in the session, according to a market source.

They came in slightly and were changing hands at 188.25 versus a stock price of $158.03 in the mid-afternoon.

There was about $7 million in reported volume.

Match Group’s stock traded to a high of $162.70 and a low of $155.82 before closing the day at $159.36, an increase of 7.54%.

The company will join the S&P 500 on Sept. 20.

Airbnb improves

Airbnb’s 0% convertible notes due 2026 were also on the rise on an outright basis on a strong day for the company’s stock.

The 0% convertible notes gained about 1 point outright with stock up more than 4%.

The notes were changing hands at 98 versus a stock price of $163.76 in the late afternoon.

Airbnb’s stock traded to its highest level since early May on Tuesday.

Stock traded to a low of $159.55 and a high of $165.74 before closing the day at $165, an increase of 4.43%.

However, the premium on the 0% notes remains high with the conversion price $288.64.

Mentioned in this article:

Airbnb Inc. Nasdaq: ABNB

Match Group Inc. Nasdaq: MTCH

Radius Global Infrastructure Inc. Nasdaq: RADI

Upstart Holdings Inc. Nasdaq: UPST

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