Morning Commentary: NiSource equity units price, trade up on debut; Airbnb active

By Abigail W. Adams

Portland, Me., April 14 – The first new paper of the week hit the convertibles secondary space on Wednesday.

NiSource Inc. priced $750 million of three-year par-of-$100 equity units after the market close on Tuesday at the cheap end of talk with a payment of 7.75% and a threshold appreciation premium of 17.5%.

Price talk was for a payment of 7.25% to 7.75% and a threshold appreciation premium of 17.5% to 22.5%, according to a market source.

The units consist of a stock purchase agreement and a 10% interest in one share of par-of-$1,000 series C mandatory convertible preferred stock.

The units were putting in a strong performance on an outright basis.

While the units traded as high as 103.75, the trade appeared to be an outlier, a source said.

The majority of prints were on a 101-handle.

NiSource’s stock traded up to $25.30, an increase of 3.27%, shortly before 11 a.m. ET.

Meanwhile, outside of the equity units, trading in convertible bonds picked up early in Wednesday’s session.

There was $145 million on the tape about one hour into the session.

While still well off their highs, Airbnb Inc.’s 0% convertible notes due 2026 were nominally improved outright with stock up early in Wednesday’s session.

The 0% convertible notes were changing hands at 101.875 versus a stock price of $180.65, according to a market source.

There was more than $20 million on the tape.

Airbnb’s stock traded to a high of $181.47 early in Wednesday’s session. However, it came in and was changing hands at $179.65, an increase of 0.96%, shortly before 11 a.m. ET.

© 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.