Convertibles primary quiet; Booking Holdings in focus; EQT down outright; SolarEdge up

By Abigail W. Adams

Portland, Me., Sept. 29 – The convertibles primary market was again dormant on Tuesday with only one business day left in the third quarter.

With the first presidential debate scheduled for Tuesday evening, potential issuers may be waiting to see the direction the market takes in response.

“It does feel like there’s some holding off,” a source said.

Meanwhile, the secondary space was active early in Tuesday’s session although activity dwindled heading into the afternoon.

There was $97 million in reported volume about one hour into the session and $371 million on the tape in the late afternoon.

Booking Holdings Inc.’s convertible notes were major volume movers during Tuesday’s session although end-of-month activity may have been the driving force of the trading activity, a source said.

However, the real end-of-month jockeying of positions will occur tomorrow, another source said.

EQT Corp.’s 1.75% convertible notes due 2026 also saw heavy volume with the notes down outright as stock dropped on a weak day for the energy sector.

Shopify Inc.’s recently priced 0.125% convertible notes due 2025 were also active although largely unchanged on a dollar-neural basis.

While volume was light, SolarEdge Technologies Inc.’s recently priced 0% convertible notes due 2025 continued to gain on an outright basis as stock broke out to a new 52-week high.

Booking Holdings eyed

Booking Holdings’ convertible notes were major volume movers on Tuesday although the activity was most likely driven by end-of-month activity, sources said.

Booking Holdings’ 0.9% convertible notes due 2021 were changing hands around 106.5 early in the session.

They were seen changing hands at 106 versus a stock price of $1,682.56 in the late afternoon.

There was more than $25 million in reported volume on the tape by the late afternoon.

The 0.75% convertible notes due 2025 were changing hands around 128.25 during Tuesday’s session.

The notes saw about $10 million in reported volume.

The online travel aggregator’s stock traded to a high of $1,712.27 and a low of $1,670.41 before closing the day at $1,672.98, a decrease of 1.61%.

EQT down outright

EQT’s 1.75% convertible notes due 2026 were also among the top traders on Tuesday with the notes down alongside stock.

The 1.75% notes traded off almost 9 points outright with stock down more than 7%.

The notes were changing hands at 115.125 in the late afternoon versus a stock price of $12.86, according to a market source.

There was more than $10 million in reported volume in the late afternoon.

EQT stock traded to a high of $13.78 and a low of $12.75 before closing the day at $12.84, a decrease of 8.22%.

Stock was down alongside the broader energy sector.

WTI crude oil futures were down as much as 4% in intraday activity on Tuesday before settling at $39.29, a decrease of $1.31 or 3.23%.

Shopify active

Shopify’s 0.125% convertible notes due 2025 were active as stock continued to skyrocket on Tuesday.

However, the notes were little changed dollar-neutral, a source said.

The 0.125% notes were changing hands at 111.5 versus a stock price of $1,018.45 in the late afternoon.

There was about $8 million in reported volume on the tape.

Shopify’s stock traded to a low of $961.40 and a high of $1,030 before closing the day at $1,025.70, an increase of 6.13%.

While the notes continued to be actively traded, “they really haven’t primed out much,” a source said. “It’s probably because they ran up so fast.”

The notes have expanded more than 6 points dollar-neutral since their aftermarket debut on Sept. 16.

SolarEdge breaks out

While volume was light, SolarEdge Technologies’ 0% convertible notes due 2025 continued to gain on an outright basis as stock broke out to a new 52-week high.

The 0% convertible notes rose to a 112-handle on Tuesday.

They were changing hands at 112.75 versus a stock price of $229.82 in the late afternoon, according to a market source.

SolarEdge’s stock traded to a low of $219 and a high of $231.83 before closing the day at $231.50, an increase of 6.05%.

Stock broke out to a new 52-week high in intraday activity with renewable energy companies on a tear over the past two sessions.

Mentioned in this article:

Booking Holdings Inc. Nasdaq: BKNG

EQT Corp. NYSE: EQT

Shopify Inc. NYSE: SHOP

SolarEdge Technologies Inc. Nasdaq: SEDG

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