Morning Commentary: Bentley Systems, 21Vianet convertibles price, trade up on debut

By Abigail W. Adams

Portland, Me., Jan. 22 – The first new convertible paper of the week made its aftermarket debut on Friday.

Bentley Systems Inc. priced an upsized $600 million of five-year convertible notes and 21Vianet Group Inc. sold $525 million five-year convertible notes after the market close on Thursday.

The new paper was in demand during bookbuilding and in the secondary space with both offerings trading up on debut.

Bentley Systems trades up

Bentley Systems priced an upsized $600 million of five-year convertible notes after the market close on Thursday at par at the rich end of talk with a coupon of 0.125% and an initial conversion premium of 45%, according to a market source.

Price talk was for a coupon of 0.125% to 0.625% and an initial conversion premium of 40% to 45%.

The notes were putting in a strong performance on their aftermarket debut.

They were marked at 103.625 bid pre-open.

The notes were trading at 103.56 with stock off slightly early in the session.

They expanded about 4.5 points dollar-neutral, a source said.

Bentley Systems’ stock was changing hands at $43.93, a decrease of 0.68%, shortly before 11 a.m. ET.

21Vianet expands

21Vianet Group priced $525 million of five-year convertible notes after the market close on Thursday at par with a coupon of 0% and an initial conversion premium of 40%, according to a company news release.

Pricing came in line with tightened talk for a fixed coupon of 0% and at the rich end of talk for an initial conversion premium of 37.5% to 40%, according to a market source.

Initial price talk was for a coupon of 0% to 0.5% and an initial conversion premium of 32.5% to 37.5%, according to a market source.

The new 0% notes were also trading up on an outright and dollar-neutral basis.

They were marked at 101.75 bid pre-open.

The notes continued to gain after the opening bell and were changing hands at 103 early in the session.

21Vianet’s American Depositary Shares traded up to $39.99, an increase of 2.78%, shortly before 11 a.m. ET.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.