Morning Commentary: onsemi convertible notes fall below par; Coupa active on takeout

By Abigail W. Adams

Portland, Me., March 2 – While the convertibles primary market appeared to close for the week with no new deals launching, the convertibles secondary space remained relatively active with new and recent deals and topical news sparking trading activity.

Equity indexes remained mixed on Thursday as selling in Treasuries pushed the 10-year Treasury yield solidly above 4%.

The Dow Jones industrial average was up 114 points, or 0.35%, the S&P 500 index was down 0.20%, the Nasdaq Composite index was down 0.48% and the Russell 2000 index was down 0.58% shortly before 11 a.m. ET.

There was $88 million in reported volume about one hour into the session.

onsemi’s 0.5% convertible notes due 2029 again fell below par on a heavy day for stocks although the notes expanded on the move down.

Coupa Software Inc.’s convertible notes were active as the notes prepare to be taken out following the completion of Thoma Bravo’s acquisition of the company.

onsemi below par

onsemi’s 0.5% convertible notes due 2029 sank below par in active trade on a heavy day for stock, although the notes expanded on the move down.

The 0.5% notes were off about 3.5 points outright with stock down almost 6%.

The convertibles were changing hands at 97.625 versus a stock price of $72.43 early in the session.

There was $7 million in reported volume.

onsemi’s stock was seen at $74.74, a decrease of 4.46%, shortly before 11 a.m. ET.

The 0.5% convertible notes were wrapped around 101 heading into Thursday’s session, their highest outright level since the $1.3 billion issue priced at par. The exercise of a $200 million greenshoe later lifted the deal size to $1.5 billion.

Coupa complete

Coupa’s convertible notes were active with the notes soon to be taken out at par following the completion of Thoma Bravo’s acquisition of the company.

The 0.125% convertible notes due 2025 and 0.375% convertible notes due 2026 were both changing hands at 99.625 early in the session.

Both tranches saw about $10 million in reported volume.

Coupa and Thoma Bravo announced the completion of the $8 billion acquisition on Tuesday.

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