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Morning Commentary: Everbridge, Eventbrite eyed
By Abigail W. Adams
Portland, Me., March 8 – The convertible primary market continued to roll out new deals on Monday as equity markets struggled to find direction.
Everbridge Inc. plans to price $275 million five-year convertible notes and Eventbrite Inc. plans to price $185 million of long five-year convertible notes after the market close on Monday.
Eventbrite’s offering looked cheap based on underwriters’ assumptions, sources said.
Everbridge eyed
Everbridge plans to price $275 million five-year convertible notes after the market close on Monday with price talk for a fixed coupon of 0% and an initial conversion premium of 37.5% to 42.5%, according to a market source.
The deal was heard to be in the market with assumptions of 275 basis points over Libor and a 42% vol., according to a market source.
Using those assumptions, the deal looked 2.5 points cheap at the midpoint of talk.
The company plans to repurchase a portion of its 1.5% convertible notes due 2022 for cash and shares in privately negotiated transactions with proceeds from the new offering.
The 1.5% notes are deep-in-the-money and trade at quadruple par.
They changed hands at 466 on Feb. 22, according to Trace data.
Eventbrite looks cheap
Eventbrite plans to price $185 million of long five-year convertible notes after the market close on Monday with price talk for a coupon of 0.75% to 1.25% and an initial conversion premium of 27.5% to 32.5%, according to a market source.
The deal was marketed with assumptions of 600 bps over Libor and a 45% vol., according to a market source.
Using those assumptions, the deal looked about 1 point to 4.6 points cheap based on where the notes fall in the pricing range, a source said.
Another source saw them as 1.6 points cheap at the midpoint of talk.
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