Bentley, Nio convertibles improve outright; Etsy hits new heights; Beyond Meat tops par

By Abigail W. Adams

Portland, Me., June 28 – It was another slow start to the week in the convertibles secondary space with volume light despite large movements in the equities of some convertibles issuers.

The week is expected to become increasingly slower as the holiday weekend approaches with end-of-month/end-of-quarter cleanup the focus of the space, sources said.

While the movement in equities again did not translate into much activity in the convertibles secondary space, Monday marked another strong day for growth stocks with the Nasdaq Composite and S&P 500 index again setting fresh records.

The S&P 500 closed the day up 0.23% and the Nasdaq Composite up 0.98% while the Dow Jones industrial average closed the day down 150 points, or 0.44%.

Bentley Systems Inc.’s 0.375% convertible notes due 2027, the most recent convertible bond to price, remained active with the notes improving on an outright basis alongside stock.

Etsy Inc.’s 0.25% convertible notes due 2028 traded up to their highest outright level since pricing as stock surged following another announced acquisition.

Nio Inc.’s 0.5% convertible notes due 2027 were also posting gains on an outright basis.

While there were only a few trades on the tape, Beyond Meat Inc.’s 0% convertible notes due 2027 again topped par after closing the previous week below.

Bentley Systems improves

Bentley Systems’ 0.375% convertible notes due 2027 remained active in the secondary space with the notes slightly improved on an outright basis.

The 0.375% notes were changing hands at 100.375 versus a stock price of $60.83 early in the session, according to a market source.

They continued to trade up and stood poised to close the day at 100.5.

Bentley Systems’ stock traded to a high of $62.40 and a low of $60.66 before closing the day at $61.91, an increase of 1.74%.

The 0.375% notes have traded between par and 101 since the infrastructure engineering software company priced a $500 million issue of the notes on June 23.

Etsy’s new heights

Etsy’s recently priced 0.25% convertible notes due 2028 hit their highest outright level since pricing on Monday.

The notes rose about 4 points outright with stock up more than 7%.

They were changing hands at 107.5 versus a stock price of $195.19 early in the session.

The 0.25% notes were changing hands at 108 in the late afternoon.

However, volume in the name was light with about $6 million on the tape heading into the market close.

Etsy’s stock traded to a low of $187.77 and a high of $199.18 before closing the day at $198.41, an increase of 7.36%.

Etsy’s stock, which has trended up strongly over the past week, surged on Monday after the Brooklyn-based handmade and vintage item e-commerce company announced it was acquiring Elo7, a Brazilian e-commerce site, for $217 million.

The acquisition marks the second for Etsy in June alone.

Etsy announced that it had acquired Depop, a London-based online resale marketplace, for $1.6 billion on June 2, shortly before it priced the 0.25% notes.

Etsy priced a $1 billion issue of the 0.25% notes on June 8 versus a stock price of $170.21.

Nio improves

Nio’s 0.5% convertible notes due 2027 saw a fresh round of activity with the notes improving on an outright basis as stock surged during Monday’s session.

The 0.5% notes rose more than 3 points with stock up almost 10%.

They were changing hands at 91.5 versus a stock price of $47.23 early in the session.

The notes continued to climb as the session progressed and were trading at 92.125 in the late afternoon.

The Shanghai-based electric car manufacturer’s American Depositary Shares traded to a low of $45.55 and a high of $49.65 before closing the day at $49.40, an increase of 9.58%.

While Monday marked a strong day for electric vehicle makers in general, Nio’s ADRs were given an extra boost after the company announced it was holding a “Power Day” event on July 9 to showcase its products and plans for growth, InvestorPlace.com reported.

Beyond Meat tops par

While volume in the name was light, Beyond Meat’s 0% convertible notes due 2027 again topped par with stock on the rise on Monday.

The 0% convertible notes rose 3 points outright with stock up as much as 7% in intraday activity.

The notes again traded up to 101 after spending the previous week between 97 and 99, according to Trace data.

Beyond Meat’s stock traded to a low of $149.21 and a high of $158.39 before closing the day at $155.70, an increase of 5.2%.

In addition to strong market conditions for growth stocks, Beyond Meat’s stock popped after the company announced that it was partnering with DoorDash to offer customers a summer grilling kit, which will include grilling tools and the company’s Beyond Burger.

Mentioned in this article:

Bentley Systems Inc. Nasdaq: BSY

Beyond Meat Inc. Nasdaq: BYND

Etsy Inc. Nasdaq: ETSY

Nio Inc. NYSE: NIO

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