Morning Commentary: Okta convertibles dip in follow-on trade; Southwest Airlines active

By Rebecca Melvin

Concord, N.H., July 9 – Okta Inc.’s 0.375% convertibles due 2026 saw follow-on trade on Friday, with the notes bumping lower with the underlying shares, after the issue added on Thursday, according to Trace data.

The notes, of which $1 billion priced in June 2020, traded at 126.44 early Friday, which was down a point on an outright basis and in tandem with lower shares, which were down 1% at late morning at $248.65.

The Okta convertibles traded off nearly a point compared to late Thursday when they changed hands at 127.22 and on Wednesday when they traded between 126 and 127. For the week, the shares are up. Company director Benjamin Horowitz sold 80,000 Okta shares in a stock transaction on Tuesday. The shares were sold at an average price of $247.94, according to a filing with the Securities and Exchange Commission.

The San Francisco-based enterprise identity provider connects enterprises with their employees, partners and customers.

Southwest Airlines Co.’s 1.25% convertibles due 2025 were trading up in the secondary space with a trade notched at 150.9 at late morning, compared to 146 late Thursday, according to Trace data.

Southwest Airlines’ shares were up nearly 3% in the early going, trading last at $52.58, which was higher by $1.42 in intraday activity.

On Thursday, the Southwest notes expanded 0.5 point on a dollar-neutral basis after being “all over the place” as the stock wavered between gains and losses. The notes changed hands at 148.5 versus a stock price of $51 shortly before the close.

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