Morning Commentary: SoFi Technologies convertible notes in focus, trade up on debut

By Abigail W. Adams

Portland, Me., Sept. 30 – One name dominated the tape in the convertibles secondary space on Thursday – SoFi Technologies Inc.

SoFi Technologies priced an upsized $1.1 billion offering of five-year convertible notes after the market close on Wednesday at par with a coupon of 0% and an initial conversion premium of 40%.

Pricing came at the rich end of price talk for a coupon of 0% to 0.5% and at the midpoint of talk for an initial conversion premium of 37.5% to 42.5%.

The greenshoe was downsized to $100 million.

The initial size of the offering was $750 million with a greenshoe of $112.5 million.

The new paper was in demand during bookbuilding and in the secondary space.

The 0% notes were trading in a tight range in heavy volume with 102.375 their volume-weighted-average price, a source said.

With the company’s stock unchanged to off slightly early in the session, the notes expanded about 2.5 points on a dollar-neutral, or hedged, basis.

There was $123 million in reported volume about one hour into the session.

SoFi’s stock was changing hands at $15.69, a decrease of 2.01%, shortly before 11 a.m. ET.

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