By Rebecca Melvin
New York, Sept. 23 – Pinduoduo Inc. announced after the market close on Tuesday plans to sell $875 million five-year convertible senior notes.
The new e-commerce platform said it will use the proceeds to enhance and expand its business. The Rule 144A and Regulation S offering was being talked at a coupon range of 0% to 0.25% and an initial conversion premium of 32.5% to 37.5%. Final terms were expected to be set after the market close on Tuesday.
Back in secondary market action, some of the newer deals remained in focus, but there were also a few stalwart issues that were drawn into trade as U.S. stock indices wavered but eventually pushed higher.
SailPoint Technologies Holdings Inc.’s 0.125% notes and Etsy Inc.’s 0.125% convertibles, both of which priced last week, were active in trade. The SailPoint convertibles were knocking around at just below par with the underlying shares little changed at $20.55.
But Etsy’s convertibles were up 1.7 points to 102.06, according to Trace data, with the underlying shares better at as high as $61.50 in early afternoon trading. But shares dropped back to about the flat line into the market close to $60.54.
Most of the active names were consistent in terms of volume of trade in a market that was described as “pretty quiet” by a New York-based market source. But Fortive Corp.’s 0.875% convertible due 2022 was the top volume issue of the session. And volume of trade in that name at $20.5 million of bonds was double the volume of the next most actives.
There were some $5 million-plus trades, with the bonds at 98.5 bid, 98.625 offered with shares closing off a quarter, or 0.4%, at $67.95. So some decent size went through, a New York-based market source said.
Elsewhere, Avadel Pharmaceuticals plc’s 4.5% convertibles traded at 65.25 in the early going as the American Depositary Shares of the Dublin, Ireland-based specialty pharmaceutical company surged more than 30% on U.S. regulatory approval of its proposed amendments to a statistical analysis plan for the REST-ON phase 3 study for once-nightly sodium oxybate, FT218.
No modifications were made to the fundamental design of the study, including the primary or secondary endpoints, closing scheme or duration of the study, according to a news report.
The company filed for Chapter 11 bankruptcy protection in February; and the Avadel bonds traded against $4.38 on the stock.
The Avadel convertible is a $125 million issue.
Meanwhile, Insulet Corp.’s older 1.375% convertibles due 2024 – not the new ones – were trading a little below double par, with the shares of the Billerica, Mass.-based medical device maker up $2.75, or 1.8%, at $158.55 last. The new $660 million Insulet 0.375% convertibles were not seen in trade.
Alder Biopharmaceuticals Inc.’s convertibles continued to trade in a range after surging more than 20 points on an outright basis last week after it was announced that the Bothell, Wash.-based developer of therapeutic monoclonal antibodies signed a definitive agreement to be acquired by H. Lundbeck A/S.
The Alder 2.5% convertibles due 2025 traded last at 110.25, which was up from 109.5 a week ago and up from about 88 prior to that, according to Trace data. Shares on Monday were unchanged at $18.62.
Among mandatory issues, Change Healthcare Inc.’s tangible equity units, which priced in June, traded down $1.25, or 2.4%, on Monday to $50.45. Change Healthcare common shares were down 1.2% to $13.08.
There was no apparent news that pulled the equity units of the Nashville, Tenn.-based health care technology company into trade. The company uses artificial Intelligence to rewrite the rules of change capture.
Mentioned in this article:
Alder Biopharmaceuticals Inc. Nasdaq: ALDR
Avadel Pharmaceuticals plc Nasdaq: ADS: AVDL
Change Healthcare Inc. Nasdaq: CHNG
| Etsy Inc.: | Nasdaq: ETSY
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| Insulet Corp. | Nasdaq: PODD
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| Pinduoduo Inc. | Nasdaq: ADS: PDD
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| SailPoint Technologies Holdings Inc. | Nasdaq: SAIL
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