Morning Commentary: Okta, Zillow trade around par after pricing large deals; Encore adds

By Rebecca Melvin

New York, Sept. 5 – New convertible issues from Okta Inc. and Zillow Group Inc. traded around par at the open after the companies priced $1 billion and $1.1 billion in new paper, respectively, in a market that saw more than $3.6 billion hit secondary market trading on Thursday.

“There’s been a lot of new paper,” a New York-based market source said by way of explaining some of the sluggishness seen in new issue action.

In addition to Okta and Zillow, NextEra Energy Partners, LP priced $1.5 billion three-year mandatory convertible equity units and Aerie Pharmaceuticals Inc. priced an upsized $275 million of 1.5% convertible senior notes due 2024 after the market close on Wednesday.

Encore Capital Group Inc. was another issuer, but its $100 million of convertible senior notes due 2025 were quoted a little higher in the early going at 101.5 bid 102.5 offered out of the gate.

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