Uber convertible notes add to gains; Western Digital hits new heights; Marriott active

By Abigail W. Adams

Portland, Me., Nov. 22 – While activity in the convertibles secondary space dwindled on Wednesday ahead of the market closure for the Thanksgiving holiday in the United States on Thursday, one name remained active.

Uber Technologies Inc.’s new 0.875% convertible notes due 2028 continued to dominate activity in the secondary space with the notes adding to their gains after a strong aftermarket debut.

Uber’s $1.5 billion convertible notes offering was the sole deal to clear the primary market during the holiday truncated week.

However, the primary market is expected to be active into the final weeks of the year with recent deals meeting with strong demand and putting in solid aftermarket performances.

While activity was light, the market tone was strong with equity indexes in the green.

The Dow Jones industrial average closed Wednesday up 185 points, or 0.53%, the S&P 500 index closed up 0.41%, the Nasdaq Composite index closed up 0.46% and the Russell 2000 index closed up 0.69%.

There was $63 million in reported convertible bond trading volume about one hour into the session and $250 million on the tape in the late afternoon.

While Uber was in focus, Western Digital Corp.’s recently priced 3% convertible notes due 2028 also remained active with the notes hitting new outright heights as it enters the Refinitiv convertible indices.

Marriott Vacations Worldwide Corp.’s 0% convertible notes due 2026 also saw some action with the notes edging higher.

Uber in focus

Uber’s new 0.875% convertible notes due 2028 remained the driving force of activity in the secondary space on Wednesday with the notes adding to their strong gains on debut.

The notes added another 0.75 point outright with stock up more than 1%.

The notes were trading at 102 versus a stock price of $55.22 early in the session, according to a market source. They were trading at 102.25 versus a stock price of $55.58 in the late afternoon.

There was $23 million in reported volume.

Uber’s stock traded to a low of $54.96 and a high of $55.85 before closing at $55.37, up 0.95%.

Uber’s latest convertible notes were “very successful,” a source said.

The offering played to strong demand during book building and made strong gains on its aftermarket debut.

The notes closed the previous session on a 101-handle with about a 1 point dollar-neutral expansion.

Western Digital gains

Western Digital’s 3% convertible notes due 2028 hit new outright heights on Wednesday after dipping alongside stock the previous session.

The 3% notes gained 1.5 points outright with stock up a little more than 1%.

They were trading at 112.5 in the late afternoon, a source said.

There was $11 million in reported volume.

Western Digital’s stock traded to a low of $46.41 and a high of $47.24 before closing at $46.91, an increase of 1.45%.

The notes saw strong buying interest on Wednesday with the issue officially joining the Refinitiv convertible indices.

The notes have made strong outright and dollar-neutral gains since pricing at par on Oct. 31.

Marriott edges higher

Marriott’s 0% convertible notes due 2026 edged higher in active trade.

The notes were up about 0.5 point outright to close the day on a 95-handle.

They were changing hands at 95.5 in the late afternoon.

There was $8 million in reported volume.

Marriott’s stock traded to a low of $77.88 and a high of $80.61 before closing at $80.44, up 4.29%.

Mentioned in this article:

Marriott Vacations Worldwide Corp. NYSE: VAC

Uber Technologies Inc. NYSE: UBER

Western Digital Corp. Nasdaq: WDC

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