Nutanix convertibles in focus, trade up; Porch, Jamf, PAR Technology gains continue

By Abigail W. Adams

Portland, Me., Sept. 16 – While activity in the convertibles secondary space slowed on Thursday, new and recent deals remained active with many continuing to improve despite some choppiness in equities.

While equities were under pressure early in the session, they pared their losses as the session progressed and closed the day mixed.

The Dow Jones industrial average closed the day down 63 points, or 0.18%, the S&P 500 index closed the day down 0.16%, and the Russell 2000 index closed the day down 0.07%.

However, the Nasdaq Composite closed the day up 0.13%.

There was about $40 million in reported volume a little over one hour into the session and $400 million in reported volume about one hour before the market close.

Nutanix Inc.’s new 0.25% convertible notes due 2027, which were issued as part of an exchange with holders of its 0% convertible notes due 2023, were in focus with the notes making large gains on an outright and dollar-neutral basis.

Jamf Holding Corp.’s 0.125% convertible notes due 2026, PAR Technology Corp.’s 1.5% convertible notes due 2027 and Porch Group Inc.’s 0.75% convertible notes due 2026 remained active with the notes continuing to post gains.

Sea Ltd.’s 0.25% convertible notes due 2026 also remained active with the notes improved on an outright basis.

Nutanix in focus

Nutanix’s new 0.25% convertible notes due 2027 were in focus on Thursday with the notes making large gains on an outright and dollar-neutral basis.

The 0.25% notes were changing hands at 102.625 versus a stock price of $42.07 in the late afternoon.

The new notes were up almost 3.5 points dollar-neutral, a source said.

There was more than $50 million in reported volume.

Nutanix’s stock traded to a low of $41.76 and a high of $43.42 before closing the day at $42.05, a decrease of 1.68%.

Nutanix issued $575 million of the 0.25% convertible notes as part of an exchange with holders of the software company’s 0% convertible notes due 2023.

Nutanix issued $477.3 million of the 0.25% notes in exchange for $416.5 million in principle of its 0% notes, in addition to $97.7 million of new notes.

On the rise

The deals to price over the past week remained active and continued to see upward momentum on Thursday.

Jamf Holding’s 0.125% convertible notes due 2026 were changing hands at 102.875 versus a stock price of $37.40 in the late afternoon.

They expanded another 0.25 point dollar-neutral.

Jamf’s stock traded to a low of $37.27 and a high of $38.49 before closing the day at $38.14, an increase of 0.63%.

PAR Technology’s 1.5% convertible notes due 2027 were “off to the races,” in terms of dollar-price, a source said.

The 1.5% convertible notes were changing hands on a 106-handle on Thursday.

They were marked at 106 versus a stock price of $61.17 in the late afternoon.

PAR’s stock traded to a low of $59.50 and a high of $62.97 before closing the day at $62.90, an increase of 1.94%.

Porch Group’s 0.75% convertible notes due 2026 rose more than 2 points outright.

They were changing hands at 102.625 versus a stock price of $19.32 in the late afternoon.

The notes have expanded about 1.5 points since their aftermarket debut on Tuesday, a source said.

Porch Group’s stock traded to a low of $18.43 and a high of $19.37 before closing the day at $19.18, an increase of 4.64%.

Sea improves

Sea’s 0.25% convertible notes due 2026 were active on Thursday with the notes continuing to improve.

The 0.25% notes were changing hands at 103.125 versus an equity price of $338.09 early in the session, according to a market source.

They traded at 103.75 versus a stock price of $340.70 in the late afternoon.

There was about $15 million in reported volume.

Sea’s American Depositary Shares traded to a low of $334.12 and a high of $343.35 before closing the day at $342.91, an increase of 1.57%.

Mentioned in this article:

Jamf Holding Corp. Nasdaq: JAMF

Nutanix Inc. Nasdaq: NTNX

PAR Technology Corp. NYSE: PAR

Porch Group Inc. Nasdaq: PRCH

Sea Ltd. NYSE: SE

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