Secondary trading light; DISH, iQIYI losses mount; RealPage jumps on acquisition

By Abigail W. Adams

Portland, Me., Dec. 21 – Trading activity in the convertible secondary space was muted as equities had a volatile day, opening deep in the red but closing largely unchanged.

There was $78 million in reported volume about one hour into the session and $372 million on the tape about one hour before the close.

DISH Network Corp.’s 0% convertible notes due 2025 and iQIYI Inc.’s 4% convertible notes due 2026 remained active with both issues continuing to trade well below par.

RealPage Inc.’s 1.5% convertible notes due 2025 were also in focus with the notes jumping on an outright basis following news of the company’s buyout.

DISH struggle continues

DISH’s 0% convertible notes due 2025 continued to struggle in the aftermarket.

The notes traded down to a 95-handle early in the session with stock off as much as 4%.

They were seen trading as low as 95.25 before stock pared its losses.

The notes traded back up to 97.5 in the late afternoon.

The 0% notes were among the most actively traded issues of Monday’s session with $23 million on the tape.

DISH stock traded to a high of $30.26 and a low of $29.23 before closing the day at $29.77, a decrease of 2.36%.

DISH’s 0% notes have struggled since hitting the aftermarket on Dec. 17.

The notes have traded below par since pricing and have been contracted dollar-neutral.

iQIYI trades down

iQIYI’s 4% convertible notes due 2026 fell deeper below par in active trading on Monday.

The 4% notes traded down to 97 early in the session.

They were seen changing hands at 96.625 versus an equity price of $16.84 in the late afternoon.

There was more than $15 million on the tape by the late afternoon.

The company’s ADSs traded to a high of $17.13 and a low of $16.69 before closing the day at $17.01, a decrease of 1.28%.

iQIYI’s 4% notes have also struggled on an outright basis since hitting the aftermarket on Dec. 17.

The notes closed out the previous week below par. However, the notes maintained a dollar-neutral expansion, sources said.

RealPage’s acquisition

RealPage’s 1.5% convertible notes due 2025 were in focus following news of the real estate software company’s acquisition.

The 1.5% notes jumped more than 15 points outright to 129 in the late afternoon, according to a market source.

There was more than $14 million in reported volume.

RealPage stock traded to a high of $89.20 before closing the day at $87.33, an increase of 28.75%.

While stock skyrocketed, the 1.5% notes will be taken out in the acquisition.

News broke on Monday that private-equity firm Thoma Bravo would purchase RealPage in an all-cash transaction valued at $10.2 billion, including debt.

RealPage priced a $345 million issue of the 1.5% notes on May 19.

Mentioned in this article:

DISH Network Corp. Nasdaq: DISH

iQIYI Inc. Nasdaq: IQ

RealPage Inc. Nasdaq: PR

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