Ascendis convertible notes on tap; Ziff Davis gains; Snap volatile; Peabody jumps again

By Abigail W. Adams

Portland, Me., March 23 – The convertibles primary market returned to action on Wednesday just as hope for new deal activity before the quarter draws to a close was beginning to diminish.

Ascendis Pharma A/S plans to price $500 million of six-year convertible notes after the market close on Thursday with price talk for a coupon of 2% to 2.5% and an initial conversion premium of 37.5% to 42.5%, according to a market source.

J.P. Morgan Securities LLC and Evercore Inc. are bookrunners for the Rule 144A offering, which carries a greenshoe of $75 million.

Equity indexes were again in the red on Wednesday with the Dow Jones industrial average closing the day down 449 points, or 1.29%, the S&P 500 index down 1.23%, the Nasdaq Composite down 1.32% and the Russell 2000 index down 1.73%.

There was $45 million of convertibles trading on the tape about one hour into the session and $435 million about one hour before the market close.

Snap Inc.’s 0.125% convertible notes due 2028 remained active with the notes volatile on an outright basis as stock wavered between gains and losses during Wednesday’s session.

Peabody Energy Corp.’s 3.25% convertible notes due 2028 returned to focus with the notes skyrocketing outright and improving on hedge as stock again surged with the energy sector.

Ziff Davis Inc.’s (formerly j2 Global Inc.) 1.75% convertible notes due 2026 were on the rise in active trading.

Snap volatile

Snap’s 0.125% convertible notes due 2028 were volatile in active trading as stock wavered between gains and losses.

The 0.125% notes traded as high as 101 and dipped below par during Wednesday’s session.

They were changing hands at par versus a stock price of $36.14 in the late afternoon, according to a market source.

There was $12 million in reported volume.

Snap’s stock traded to a high of $37.19 and a low of $35.12 before closing the day at $35.87, a decrease of 1.02%.

The 0.125% convertible notes topped par for the first time since early March during Tuesday’s session.

Peabody rockets again

Peabody Energy’s 3.25% convertible notes due 2028 again rocketed higher during Wednesday’s session with the coal producer back in vogue as oil futures again surged.

The 3.25% notes climbed 9 points with stock up 10%.

They were changing hands at 152.25 versus a stock price of $25.28 in the late afternoon, according to a market source.

The notes expanded 0.5 to 0.75 point on the move up.

There was $9 million in reported volume.

Peabody’s stock traded to a low of $24.80 and a high of $26.41 before closing the day at $26.04, an increase of 10.39%.

Peabody’s 3.25% convertible notes claim the title of the most successful deal of 2022 to date.

Peabody priced a $275 million offering of 3.25% convertible notes at par on Feb. 24, the day Russian forces launched their invasion of Ukraine.

While broader equity markets have gotten pummeled, the coal producer saw its stock skyrocket as crude oil futures soared in response to the invasion.

Ziff Davis gains

Ziff Davis’ 1.75% convertible notes due 2026 were active on Wednesday with the notes gaining outright as stock dipped.

The 1.75% notes rose about 2 points outright with stock off about 1.5%.

The notes were changing hands at 117.25 versus an equity price of $102.58 in the late afternoon.

There was $11 million in reported volume.

Ziff Davis’ stock traded to a low of 100.76 and a high of 103.64 before closing the day at $101.52, a decrease of 1.54%.

Mentioned in this article:

Ascendis Pharma A/S Nasdaq: ASND

Peabody Energy Corp. NYSE: BTU

Snap Inc. NYSE: SNAP

Ziff Davis Inc. Nasdaq: ZD

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