Morning Commentary: Insight Enterprises convertibles on tap; new Snap notes in focus

By Abigail W. Adams

Portland, Me., Aug. 12 – Following the highest-volume week for new deal activity year to date, the convertible primary market launched the week with another new deal.

Insight Enterprises plans to price $300 million of 5.5-year convertible notes after the market close on Monday with price talk for a coupon of 0.75% to 1.25% and an initial conversion premium of 30% to 35%, according to a market source.

Sources pegged assumptions at 300 basis points over Libor and a 30% vol., which modeled about 0.75 point cheap at the midpoint of talk.

Meanwhile, the secondary space saw decent trading volume for a summer Monday with about $51 million in reported volume.

Recent deals were in focus in the secondary space with Snap Inc.’s new 0.75% convertible notes due 2026 again a major volume mover.

The 0.75% convertible notes traded down outright as stock dropped amid general weakness in the market.

The notes were down 1.5 points outright to 105.25. About $9 million of the bonds were on the tape one hour into Monday’s session.

Snap stock was changing hands at $16.58, a decrease of 2.32%, shortly before 11 a.m. ET.

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