Morning Commentary: Zendesk in focus on buyout

By Abigail W. Adams

Portland, Me., June 24 – It was a quiet morning in the convertible secondary space as equity markets continued to rally as the market dialed back its rate-hike forecast – with the exception of one name.

Zendesk Inc.’s 0.625% convertibles due 2025 dominated the tape on news the company was zeroing in on a buyout offer.

The 0.625% convertible notes jumped 5 points outright.

They were changing hands just shy of 97 early in the session.

There was more than $19 million in reported volume.

News broke Friday that Zendesk was zeroing in on a sale after longstanding speculation and debate about the software company as a buyout target.

The company announced in a press release that it entered into a definitive agreement with Permira and Hellman & Friedman LLC to be acquired in an all-cash transaction that values the company at $10.2 billion.

Under the terms of the agreement, shareholders will receive $77.50 per share, representing a 34% premium over the company’s closing stock price on June 23.

The sale would trigger a change-of-control par put, a source said.

Outside of Zendesk, the secondary space was quiet with few names experiencing concentrated activity.

© 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.