Morning Commentary: Radius convertible notes active, unchanged on merger investigations

By Abigail W. Adams

Portland, Me., March 28 – It was another quiet start to the day in the convertibles secondary space as broader markets struggled to find direction.

Equity indexes launched Tuesday’s session mixed as Treasuries stabilized with the Nasdaq Composite index the laggard as the market reassessed its rate cut bets.

However, indexes were dragged into negative territory shortly before 11 a.m. ET with the Dow Jones industrial average down 3 points, or 0.03%, the S&P 500 index down 0.35%, the Nasdaq Composite index down 1.04% and the Russell 2000 index down 0.01%.

Few were making moves amid the uncertainty in the market with $75 million in reported convertibles trading volume about one hour into the session and few names seeing concentrated trading activity.

Radius Global Infrastructure Inc.’s 2.5% convertible notes due 2026 were active although with little change in price as law firms announced their investigation of the company’s acquisition.

The 2.5% convertible notes remained on a 97-handle and were wrapped around 97.5 in early trade, according to a market source.

There was $6 million in reported volume.

Radius’ stock was changing hands at $14.58, a decrease of 0.24%, shortly before 11 a.m. ET.

Radius’ 2.5% convertible notes jumped 10 points to a 97-handle on March 1 after the company announced that EQT and the Public Sector Pension Investment Board would take the company private in a $3 billion deal.

The deal is expected to close in the third quarter.

Radius’ notes were active after law firms Monteverde & Associates and Kaskela Law LLC announced an investigation into the merger.

While active, the notes were unchanged with little concern that the deal was in jeopardy.

“These things are common,” a source said.

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