Morning Commentary: Sea convertibles continue to trade actively in line with shares

By Rebecca Melvin

New York, Nov. 15 – Sea Ltd.’s 1% convertibles saw significant follow-on action in U.S. convertibles early Friday after the $1 billion of notes debuted in the market on Thursday.

The Sea convertible was trading off slightly at 102.4, which was down 0.4 point, with the underlying shares down about 2%, according to Trace data.

Sea was the second-best performer among three new deals on Thursday, moving up 3 points on an outright basis and up 1.125 points on a dollar-neutral basis, a portfolio manager said.

CyberArk Software Ltd. was also trading in decent volume after being the outperformer in Thursday’s session. The 0% notes were seen changing hands at 101.575, which was up 0.2 point, according to Trace data. CyberArk shares were trending lower and were last down by $1.62, or 1.4%, at $112.57.

Halozyme Therapeutics Inc.’s 1.25% notes, which was Thursday’s third deal, also continued to be seen in trade on Friday.

Those notes were up 0.3 point to 102.662, according to Trace data, while Halozyme shares lifted. The stock was last up 43 cents, or 2.3%, at $18.92. The bonds had moved up 1.75 points on an outright basis on Thursday but expanded only about 0.125 point on a swap basis.

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