Morning Commentary: Impinj convertible notes hit the aftermarket, expand on debut

By Abigail W. Adams

Portland, Me., Nov. 3 – The first new convertible bond deal of the month hit the secondary space on Wednesday with the paper in demand during bookbuilding and in the aftermarket.

Impinj Inc. priced an upsized $250 million of six-year convertible notes after the market close on Tuesday at par with a coupon of 1.125% and an initial conversion premium of 42.5%.

Pricing came at the midpoint of tightened talk for a coupon of 1% to 1.25% and in line with talk for a fixed initial conversion premium of 42.5%, according to a market source.

Initial talk was for a coupon of 1.25% to 1.75% and an initial conversion premium of 37.5% to 42.5%, according to a market source.

The greenshoe was also upsized to $37.5 million. The initial size of the offering was $225 million with a greenshoe of $33.75 million.

The new paper made large gains on an outright and dollar-neutral, or hedged, basis in the aftermarket.

The 1.125% notes traded as high as 102.5 shortly after the open bell. They were changing hands around 101.5 about one hour into the session.

The notes expanded about 1.5 points on hedge, a source said.

Impinj’s stock was changing hands at $78, an increase of 0.096%, shortly before 11 a.m. ET.

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