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Published on 5/15/2020 in the Prospect News Convertibles Daily.

Morning Commentary: Teladoc, Colliers, PetIQ convertibles make their aftermarket debut

By Abigail W. Adams

Portland, Me., May 15 – The convertibles primary market rounded out another record setting week with three deals pricing after the market close on Thursday.

Teladoc, Inc. priced an upsized $850 million of seven-year convertible notes, Colliers International Group Inc. priced $200 million of five-year convertible notes and PetIQ Inc. sold $125 million of six-year convertible notes.

The three deals brought the weekly tally for new deal volume to $7.84 billion over 15 deals, making the May 11 week the busiest week of the year for new deal activity.

Unlike several of the deals to price earlier in the week, new paper from Teladoc and Colliers was putting in strong performances in the secondary space.

Teladoc upsizes

Teladoc priced an upsized $850 million of seven-year convertible notes after the market close on Thursday at par at the cheap end of talk with a 1.25% coupon and an initial conversion premium of 35%.

Price talk was for a coupon of 0.75% to 1.25% and an initial conversion premium of 35% to 40%.

The greenshoe was also upsized to $150 million.

The initial size of the deal was $800 million with a greenshoe of $120 million.

The new paper dominated activity in the secondary space and was trading up on an outright basis as stock wavered between gains and losses.

The notes traded to a low of 99.75 with stock off soon after the opening bell. However, the notes traded up to 101.125 as stock spiked.

The notes saw more than $24 million in reported volume about one hour into the session.

Teladoc stock traded to a low of $175.45 and a high of $181.78 early in the session. Stock was changing hands at $178.09, a decrease of 0.81%, shortly before 11 a.m. ET.

Colliers outperforms

Colliers priced $200 million of five-year convertible notes after the market close on Thursday at par with a coupon of 4% and an initial conversion premium of 32.5%.

Pricing came at the cheap end of talk for a coupon of 3.5% to 4% and at the midpoint of talk for an initial conversion premium of 30% to 35%.

The new paper jumped on an outright basis as stock soared early Friday.

The 4% notes traded as high as 104. “They’re doing well,” a source said.

The notes saw more than $13.7 million in reported volume about one hour into the session.

Colliers stock traded up to $46.10, an increase of 5.37%, shortly before 11 a.m. ET.

PetIQ prices cheap

PetIQ priced $125 million of six-year convertible notes after the market close on Thursday at par at the cheap end of talk with a coupon of 4% and an initial conversion premium of 25%, according to a market source.

Price talk was for a coupon of 3.5% to 4% and an initial conversion premium of 25% to 30%, according to a market source.


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