Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers M > Headlines for Magnite > News item |
Morning Commentary: DraftKings, Magnite convertible note offerings on tap to begin week
By Abigail W. Adams
Portland, Me., March 15 – The parade of new convertibles deals continued on Monday with two offerings totaling $1.35 billion slated to price after the market close.
DraftKings Inc. plans to price $1 billion of seven-year convertible notes, and Magnite plans to sell $350 million of five-year convertible notes.
The offerings continued to model cheap based on underwriters’ assumptions.
DraftKings in focus
DraftKings plans to price $1 billion of seven-year convertible notes after the market close on Monday with price talk for a coupon of 0% to 0.5% 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 300 basis points over Libor and a 45% vol.
Using those assumptions, the deal looked 2.125 points cheap at the midpoint of talk, a source said.
The short interest in the name is 6.47%.
Magnite notes eyed
Magnite plans to price $350 million of five-year convertible notes after the market close on Monday with price talk for a coupon of 0% to 0.5% and an initial conversion premium of 37.5% to 42.5%, according to a market source.
Underwriters were marketing the deal with assumptions of 350 bps over Libor and a 45% vol.
Using those assumptions, the deal looked 2.8 points cheap at the midpoint of talk, a source said.
The short interest in the name is 8.32%.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.