Morning Commentary: Trip.com/Huazhu prices; Atlantica markets $100 million green exchangeable

By Rebecca Melvin

New York, July 14 – Trip.com Group Ltd.’s newly priced senior note exchangeable into shares of Huazhu Group Ltd. appeared to be trading up in the early going on Tuesday after the company priced $500 million of the seven-year notes at the midpoint of coupon talk and at the cheap end of exchange premium talk.

The new Trip.com exchangeable priced with a 1.5% coupon and 20% premium. The notes were heard at 101 to 103 in the pre-open, and Huazhu shares were up fractionally in the morning session.

The notes are non-callable, but there are bondholder puts on July 1, 2023 and July 1, 2025 at par plus accrued and unpaid interest.

J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were bookrunners.

Convertible market players were also watching a planned five-year green exchangeable note announced early Tuesday by Atlantica Sustainable Infrastructure Jersey Ltd.

The renewable energy company plans to price the $100 million deal with a 3.5% to 4% coupon and 20% to 25% conversion premium, according to market sources.

Assumptions at which the Rule 144A deal was marketed were 500 basis points over Libor for the credit spread and 28% vol.

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