Morning Commentary: Convertibles secondary quiet as stocks drop; Korea’s Kakao eyed

By Rebecca Melvin

New York, Oct. 28 – The convertibles secondary space got off to a quiet start on Wednesday and there were no issues launched in the U.S. primary as the broader markets weakened amid a raft of negative headlines regarding the Covid-19 coronavirus pandemic, according to sources.

Exact Sciences Corp.’s convertible sister convertible issues were quiet after activity on Tuesday following the molecular diagnostics company’s earnings report, an acquisition announcement and secondary offering.

Both the Exact Sciences 0.375% convertible notes due 2027 and 0.375% convertible notes due 2028 were quiet as shares backed off from their bump up on Tuesday. The shares were down $3.74, or 2.9%, at $127.38 at late morning.

Internationally, word emerged that Seoul-based internet portal services company Kakao Corp. issued its planned $300 million three-year convertible bond with a fixed coupon of 0%.

Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were joint global coordinators and bookrunners for the Regulation S offering.

The proceeds of that deal are earmarked for general corporate purposes.

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