Morning Commentary: Xometry convertible notes down outright, up on swap in early trading

By Abigail W. Adams

Portland, Me., Feb. 2 – New paper was again in focus in the convertibles secondary space on Wednesday as one new deal made its aftermarket debut.

Xometry Inc. priced $250 million of five-year convertible notes after the market close on Tuesday at par at the cheap end of talk with a coupon of 1% and an initial conversion premium of 27.5%.

The notes hit the secondary space on a mixed day for equities with the small cap index leading losses.

The Dow Jones industrial average was up 5 points, or 0.01%, the S&P 500 index was up 0.38%, the Nasdaq Composite was up 0.22% and the Russell 2000 index was down 1.21%.

Xometry fell into the category of stocks that were under pressure during Wednesday’s session.

While the notes were trading below par on an outright basis with stock in negative territory, the notes were performing well on hedge.

The 1% notes were up 0.5 point to 0.75 point dollar-neutral, a source said.

Xometry’s stock was changing hands at $43.05, a decrease of 2.18%, shortly before 11 a.m. ET.

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