Morning Commentary: Enovis hits aftermarket, expands on debut; Semtech wraps offering

By Abigail W. Adams

Portland, Me., Oct. 20 – The convertibles secondary space was active early Friday as the first new paper of the week made its aftermarket debut.

Enovis Corp. priced $400 million of five-year convertible notes after the market close on Thursday.

The new paper hit the secondary space amid continued heaviness in the market as escalations in the Middle East and continued rate uncertainty weighed on risk sentiment.

The Dow Jones industrial average was down 177 points, or 0.53%, the S&P 500 index was down 0.98%, the Nasdaq Composite index was down 1.39% and the Russell 2000 index was down 0.76% shortly before 11 a.m. ET.

Enovis’ new paper dominated the tape and was putting in a strong performance with the notes up outright and expanding dollar-neutral.

Semtech Corp. also successfully placed $250 million of five-year convertible notes after the market close on Thursday.

There was uncertainty about whether the transaction would be completed as the company’s stock plunged 22% with word on the street that the offering was pulled.

The new paper was not active early Friday.

Enovis expands on debut

Enovis priced $400 million of five-year convertible notes after the market close on Thursday at par at the midpoint of talk with a coupon of 3.875% and an initial conversion premium of 30%.

Price talk was for a coupon of 3.625% to 4.125% and an initial conversion premium of 27.5% to 32.5%.

The offering played to solid demand and was performing well on its aftermarket debut despite the continued heaviness in the market.

The 3.875% notes were changing hands at 100.875 versus a stock price of $17.15 early in the session, according to a market source.

They expanded dollar-neutral.

Enovis’ stock was trading at $44.53, a decrease of 0.74%, shortly before 11 a.m. ET.

Semtech completed

While there was uncertainty about whether the transaction would be completed, Semtech successfully placed its $250 million offering of five-year convertible notes.

The notes priced after the market close on Thursday at par with a coupon of 4% and an initial conversion premium of 27.5%.

The 4a2 private placement was limited to a small group of investors and was not seen in trade early Friday.

© 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.