Morning Commentary: New convertibles from Nutanix and Patrick Industries hit the market

By Abigail W. Adams

Portland, Me., Jan. 18 – New convertible bonds from Nutanix Inc. and Patrick Industries Inc. hit the market on Thursday with both gaining on an outright basis in a flurry of trading activity, according to a market source.

Nutanix priced an upsized $500 million of five-year convertible notes prior to the market open on Thursday with a coupon of 0%, at the rich end of talk, and with an initial conversion premium of 33%, richer than talk.

Price talk had been for a coupon of 0% to 0.5% and an initial conversion premium of 25% to 30%, according to a market source.

The 0% notes were trading in a range of 101.5 to 102.853 early in Thursday’s session, a market source said. Nutanix stock was down early Thursday to $36.05, a decrease of 1.71%.

Patrick Industries priced an upsized $150 million of five-year convertible notes after the market close on Wednesday with a coupon of 1% and an initial conversion premium of 35%.

The deal came within talk for a coupon of 0.875% to 1.375% and an initial conversion premium of 32.5% to 37.5%.

The 1% notes were trading in a wide range with a low that was just above par and a high of 104.15, according to a market source. Patrick stock was up in early trades to $66.90, an increase of 2.76%.

© 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.