| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers T > Headlines for Teladoc, Inc. > News item |
Morning Commentary: Five9 and Teladoc hit the market, open near par or above in early trading
By Abigail W. Adams
Portland, Me., May 4 – New convertible notes from Five9 Inc. and Teladoc Inc. were the focus of the secondary space on Friday with Five9 trading up about 1 point outright and Teladoc hovering just above par.
The deals “were lackluster, but they got done,” a market source said. The pricing left the secondary market little upside potential, the source said.
Teladoc priced an upsized $250 million of seven-year convertible notes after the market close on Thursday with a coupon of 1.375% and an initial conversion premium of 28.5%.
Pricing came at the cheap end of talk for a coupon of 0.875% to 1.375% and toward the cheap end of talk for a conversion premium of 27.5% to 32.5%. The initial size of the deal had been $225 million.
The notes were seen trading just above par on their market debut. “They’re out the door and in place, but they’re not that exciting,” the source said.
The 1.375% notes saw high-volume trading early in the session with $38.5 million of the bonds in play.
Teladoc stock was off on Friday with stock trading down between 17 cents and $1.00 early in the session.
Five9 priced an upsized $225 million of five-year convertible notes after the market close on Thursday at the cheap end of talk with a coupon of 0.125% and an initial conversion premium of 30%.
Price talk had been for a coupon of 0% to 0.125% and an initial conversion premium of 30% to 35%. The deal was increased from $200 million.
The new 0.125% notes were seen trading up to 101 early in the session. “They just got lifted,” a market source said of a recent trade.
Five9 stock was up about 10 cents to $31.50 early in the session. The notes were dominating trading activity in the secondary market with $47 million of the bonds in play.
The trading activity is typical of new paper, a market source said. “A lot of people concentrate on that and volume in other names is light. It sucks up the attention for a little while.”
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.