Rexford exchangeable notes hit new low; Weibo active; SoFi Technologies weakens

By Abigail W. Adams

Portland, Me., April 18 – It was another quiet day in the convertibles secondary space on Thursday with the market leveling off after some selling pressure earlier in the week.

Equity indexes once again attempted a rebound with solid gains early in the session.

However, selling pressure again took hold into the market close with indexes giving back their early gains and closing either side of unchanged.

The Dow Jones industrial average closed Thursday up 22 points, or 0.06%, the S&P 500 index closed down 0.22%, the Nasdaq Composite index closed down 0.52% and the Russell 2000 index closed 0.26%.

There was $48 million in reported convertible bond trading volume early in the session and $400 million by the late afternoon.

Rexford Industrial Realty, LP’s two tranches of exchangeable notes (Baa2/BBB+/BBB+) continued their downtrend with the notes hitting their lowest level since pricing.

Weibo Corp.’s 1.375% convertible notes due 2030 (Baa2/BBB) were active although with little movement in price with the notes continuing to trade on a 94-handle.

SoFi Technologies Inc.’s 1.25% convertible notes due 2029 were active with the notes once again dropping below par amid the weakness in the market.

While activity in the name petered out as the session progressed, Zillow Group Inc.’s 1.375% convertible notes due 2026 were active early with the notes weaker.

Rexford’s new low

Rexford’s two tranches of exchangeable notes continued their downtrend on Thursday with the notes hitting a new outright low in active trade.

Rexford’s 4.375% exchangeable notes due 2027 traded down to a 97-handle.

The notes were changing hands at 97 versus a stock price of $42.37 in the late afternoon, according to a market source.

There was $26 million in reported volume.

The 4.125% exchangeable notes due 2029 traded down to a 96-handle.

They were trading at 96 versus a stock price of $42.36 in the late afternoon.

There was $12 million in reported volume.

Rexford’s stock traded to a low of $41.89 and a high of $43.59 before closing at $43.19, down 2.29%.

The convertible notes remained weak on the heels of Rexford’s first-quarter earnings report.

Rexford reported earnings per share of 27 cents on revenue of $210.99 million after the market close on Wednesday, which was largely in line with expectations.

Rexford’s stock was under pressure in the run up to earnings with the industrial REIT’s stock down 15% over the past month.

Rexford’s exchangeable notes were among the last deals to clear the primary market in late March.

Weibo active

Weibo’s 1.375% convertible notes due 2030 were active although with little movement in price on Thursday with the notes closing the day on a 94-handle.

The 1.375% notes were trading at 94.75 versus an equity price of $7.94, according to a market source.

There was $14 million in reported volume.

The Beijing-based social networking company’s American Depositary Shares traded to a low of $7.80 and a high of $8.11 before closing at $8.06, an increase of 3.73%.

SoFi below par

SoFi’s 1.25% convertible notes due 2029 saw renewed attention on Thursday with the notes active as they again traded below par.

The 1.25% convertible notes continued to trade in the 97.5 to 98.5 context on Thursday after sinking below par earlier in the week.

The notes were changing hands at 98.375 versus a stock price of $7.33 in the late afternoon, according to a market source.

There was $13 million in reported volume.

SoFi’s stock traded to a low of $7.07 and a high of $7.38 before closing at $7.13, down 0.42%.

Zillow weakens

While activity in the name petered out as the session progressed, Zillow’s 1.375% convertible notes due 2026 saw a flurry of activity early in the session with the notes weakening.

The 1.375% notes were off about 1 point outright with stock largely unchanged.

The notes were seen at 114.625 versus a stock price of $42.49 early in the session.

There was $5 million in reported volume.

Zillow’s stock traded to a high of $42.88 and a low of $41.76 before closing at $41.81, off 1.72%.

Zillow has been under pressure for the past month with a revamp of real estate commission fees and dragging home sales pulling down the company’s stock and convertible notes.

Home sales figures released on Thursday, which marked the largest decline in previously owned homes in more than one year, may have sparked the activity in the name, a source said.

Mentioned in this article:

Rexford Industrial Realty Inc. NYSE: REXR

SoFi Technologies Inc. Nasdaq: SOFI

Weibo Corp. Nasdaq: WB

Zillow Group Inc. Nasdaq: Z

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