| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Review > Headlines for 2022 > News item |
Morning Commentary: One Medical convertible notes drift lower on quiet morning
By Abigail W. Adams
Portland, Me., July 25 – It was a quiet morning in the convertibles secondary space with volume light and uncertainty high as the market awaits another historic rate increase from the Federal Reserve on Wednesday.
Equity indexes were mixed as debates rage over inflation, recession and the pace of the Federal Reserve’s rate hike schedule.
The Dow Jones industrial average was up 90 points, or 0.27%, the S&P 500 index was up 0.08%, the Nasdaq Composite index was down 0.40% and the Russell 2000 index was up 0.25% shortly before 11 a.m. ET.
There was $40 million in reported volume about one hour into the session with few names seeing concentrated trading activity.
1Life Healthcare Inc.’s (One Medical) 3% convertible notes due 2025 continued to drift lower in active trading after surging following news Amazon would acquire the health care technology company.
The notes were changing hands at just shy of 97.875 early in Monday’s session.
There was $5 million in reported volume.
One Medical’s stock was trading at $17.02, a decrease of 0.73%, shortly before 11 a.m. ET.
News broke late last week that Amazon would acquire One Medical for $18.00 per share, including debt, in an all-cash transaction.
The notes surged 11 points outright and 7 points on a dollar-neutral, or hedged, basis on the news to trade as high as a 98-handle.
While the notes will be taken out at par in the acquisition, they have drifted lower over the past two sessions.
The notes were seen as trading rich on a 98-handle given the amount of time that may be involved in Amazon closing the transaction, sources said.
© 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.