Morning Commentary: New, upsized Echo adds on debut; salesforce.com moves with shares

By Rebecca Melvin

New York, April 30 – Echo Global Logistics Inc.’s newly priced 2.5% convertible bonds gained on an outright basis and added on swap early Thursday on their debut in secondary market action. The issuer priced an upsized $200 million of the five-year senior notes through the rich end of price talk.

The new Echo notes jumped to 104 out of the gate, and later came back to 102 as shares of the Akron, Ohio, plastics and resins supplier came off.

Echo shares were last at $29.11, down 53 cents, or 1.8%.

That was a dollar-neutral gain for the noes of 2.25 points, a Connecticut-based trader said.

The Echo notes came concurrently with a secondary offering of common stock at $29.00 each, or about $145 million in proceeds.

Echo dominated trading action in the early going, accounting for $142 million of $219 million total bonds traded, according to a read of Trace data.

salesforce.com Inc.’s convertibles continued to trade in step with shares of the San Francisco-based cloud computing company after a pop Wednesday amid chatter about a potential sale of the company.

The salesforce.com 0.25% convertibles due 2018 traded at 124.7 early Thursday with shares around $71.80.

Euronet Worldwide Inc. showed up on the Trace tape after the Leawood, Kan.-based electronic payments provider reported profit that beat estimates by 2 cents but missed on revenue. Euronet shares were down $2.50, or 4%, on the news to $58.50. Euronet’s 1.5% convertibles due 2044 traded down 2 points at 109.375, according to Trace data.

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