Morning Commentary: Spire convertibles price, trade up on debut; Peloton notes active

By Abigail W. Adams

Portland, Me., Feb. 10 – The convertibles market saw more new paper on Wednesday.

Spire Inc. priced an upsized $160 million three-year $50-par equity units after the market close on Tuesday at the rich end of talk with a dividend of 7.5% and a threshold appreciation premium of 22.5%.

Price talk was for a dividend of 7.5% to 8% and a threshold appreciation premium of 17.5% to 22.5%, according to a market source.

The initial size of the offering was $150 million.

The units were marked at $51.25 bid, $51.75 offered versus a stock price of $64.50 early in the session.

Meanwhile, the secondary space was active with $155 million on the tape about one hour into the session, according to a market source.

Peloton Interactive Inc.’s 0% convertible notes due 2026 continued to dominate the tape with the notes improving on an outright basis alongside stock.

The 0% notes were changing hands at 107.5 about one hour into the session, according to a market source.

There was more than $29 million on the tape.

Peloton’s stock traded to a high of $150.50 before selling off alongside the broader markets.

Stock was changing hands at $144.53, a decrease of 2.03%, shortly before 11 a.m. ET.

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