Primary market quiet; Booking convertible notes in focus; Bentley Systems active

By Abigail W. Adams

Portland, Me., July 12 – The convertibles primary market remained quiet on Monday with no deals announced.

With earnings season launching, prospects were dim for new deal activity in the weeks ahead, sources said.

The primary market dry spell is now entering its third week with the last convertible bond deal Bentley Systems Inc.’s $575 million issue of 0.375% convertible notes due 2027, which priced on June 23.

With no new paper entering the space and equities flat, the secondary space was equally quiet.

There were few names on the tape and little significant movement in the names that did trade.

While the three major equity benchmarks dipped briefly into negative territory early in the session, they closed the day with nominal gains.

The Dow Jones industrial average was up 126 points or 0.36%, the S&P 500 index was up 0.35% and the Nasdaq Composite was up 0.21%.

The Russell 2000 index closed the day up 0.08%.

There was $233 million in reported volume about one hour before the market close.

“It’s a summer Monday,” a source said.

Booking Holdings Inc.’s convertible notes remained active as the 0.9% convertible notes due Sept. 15 approach their maturity date.

While Booking’s convertible notes saw heavy volume as holders rotated out of the soon-to-mature issue for the longer duration issue, the notes were largely unchanged, sources said.

Bentley Systems’ 0.375% convertible notes were also active on Monday although with little movement in price.

Booking in focus

Booking’s convertible notes continued to dominate the tape as holders rotated out of the soon-to-mature notes for the longer duration notes.

The 0.9% convertible notes due Sept. 15 continued to trade around 108.

There was more than $5 million in reported volume.

The 0.75% convertible notes due 2025 were changing hands at 142.625 early in the session.

They continued to trade on a 142-handle heading into the afternoon.

There was more than $10 million in reported volume.

Booking’s stock traded to a high of $2,206.18 and a low of $2,166.50 before closing the day at $2,204, an increase of 0.41%.

Booking’s convertible notes have been a fixture on the tape over the past week.

Bentley Systems active

Bentley Systems’ 0.375% convertible notes due 2027 were active on Monday although with little movement in terms of price.

The 0.375% notes continued to trade on a 102-handle.

They were changing hands at 102.375 in the late afternoon, according to a market source.

Bentley Systems’ stock traded to a high of $65 and a low of $63.20 before closing the day at $63.94, a decrease of 0.40%.

Mentioned in this article:

Bentley Systems Inc. Nasdaq: BSY

Booking Holdings Inc. Nasdaq: BKNG

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