New Etsy convertible slips on debut; new Adesto zooms up to 106; SailPoint in focus

By Rebecca Melvin

New York, Sept. 19 – Etsy Inc.’s newly priced 0.125% convertibles opened flat to slightly higher on an outright basis on Thursday but unchanged to down 0.125 point on a hedged basis, according to market sources.

The notes were said to be 100 bid to 100.125 or 100.25 offered outright at the open, according to one source.

On swap, they traded down a touch versus the $59.45 closing share price, so 99.875 bid, 100 offered, a second New York-based market source said.

The New York-based e-commerce site priced $650 million of the seven-year notes at par in an overnight deal.

At late morning the new paper was seen to have traded at 100.41, according to Trace data. Etsy shares were up modestly by around 1% in the early going. Late in the session, the new Etsy slopped below par, changing hands at 99.9, with the underlying shares also slipping to close at $59.07, down 38 cents, or 0.6%.

The existing Etsy 0% notes due 2023 were seen in early trade on Thursday at 176.45, which Trace recorded as down 2.67 points. Late in the session they were 173.8.

The newly priced Adesto Technologies Corp. 4.25% convertibles zoomed up to 106 on their debut after the California-based tech company priced $70 million of the five-year notes.

Pricing of the Rule 144A deal occurred at the rich end of talked terms, which were for a coupon of 4.25% to 4.75% and an initial premium of 27.5% to 32.5%.

Adesto shares were up 31 cents, or 3.4%, at $9.36 at late morning but closed down 9 cents, or nearly 1%, at $8.87. They were substantially below the $10.63 mark at which they stood prior to the convertible being announced.

SailPoint Technologies Holdings Inc. was also in focus after the software company announced that it plans to price $300 million of five-year convertible notes.

The notes were expected to price after Thursday’s market close, and they were being talked to yield 0.125% to 0.625% with an initial conversion premium of 32.5% to 37.5%.

Fair value of the SailPoint notes was said to be 101.79 at the midpoint of pricing talk using a credit spread of 325 basis points over Libor and a 40% vol., a New York-based trader said.

Meanwhile, Redwood Trust Inc. said subsidiary RWT Holdings Inc. planned to sell $175 million of exchangeable senior notes due 2025, with the proceeds earmarked for debt repayment, including all or a portion the $201 million of RWT Holdings’ 5.625% exchangeable senior notes due 2019, as well as investment activities and opportunities in portfolios of residential, multifamily, or business purpose residential loans or securities.

The Rule 144A deal has an over-allotment option for up to an additional $26.25 million of exchangeables.

The real estate investment trust is based in Mill Valley, Calif.

Internationally, Dubai’s DP World Ltd. is tendering for any and all of its $847.2 million of outstanding 1.75% convertible bonds due 2024 for cash through a reverse bookbuilding process, according to a notice.

The company is offering $199,750 per $200,000 principal amount.

DP World said it is making the offer, along with a tender offer for its $500 million of 3¼% notes due 2020 that was also announced Thursday, in order to manage upcoming debt maturities and will use drawdowns under its existing credit facilities, existing cash resources and/or the proceeds of any new securities issuance to fund the purchase of any notes accepted for purchase in the offer.

The company said it is considering its options regarding a potential new securities issuance, subject to market conditions, under its $10 billion global medium-term note program or its $5 billion trust certificate issuance program with DP World Crescent Ltd.

DP World is a Dubai-based operator marine terminals and provides related services.

In addition, France’s BIO-UV Group SA priced €3 million of five-year convertible bonds with a nominal value of €4.75 and an interest rate of 6%, according to a company news release on Thursday.

The French water disinfection systems company said the convertible is part of a Sept. 6 contract with five funds managed by two management companies, Eiffel Investment Group and Vatel Capital.

The proceeds will allow the company to partially fund the acquisition of Triogen Holdings Ltd.

The water disinfection systems company is based in Lunel, France.

Mentioned in this article:

Adesto Technologies Corp. Nasdaq: IOTS

Bio-UV Group SA Paris: ALTUV

Etsy Inc. Nasdaq: ETSY

Redwood Trust Inc. NYSE: RWT

SailPoint Technologies Holdings Inc. Nasdaq: SAIL

© 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.