Morning Commentary: Convertibles trading volume light; Mindbody jumps on buyout news

By Abigail W. Adams

Portland, Me., Dec. 24 – The convertibles secondary space opened Monday with $7 million on the tape a little more than one hour into the session, and not much more was expected for the remainder of the afternoon.

Mindbody Inc. was “the excitement of the day,” a market source said.

As equity markets opened another session in the red, Mindbody’s stock soared on news the company would be taken private in a $1.9 billion buyout by Vista Equity Partners.

However, Mindbody’s 0.375% convertible notes due 2023 only saw one print on the tape. “That kind of tells you nothing’s going on,” a source said.

While there was only one transaction early in the session, the 0.375% convertible notes jumped 10 points outright to trade at 98.5.

The notes, which priced at par in June, have been in the mid-80 range since stock sold off after the company reported earnings in November.

The cloud-based business management software company for the wellness services industry announced Monday that it would be acquired by private equity firm Vista Equity Partners.

Vista will acquire all outstanding shares of Mindbody for $36.50 a share, which is a 68% premium from the closing price of Dec. 21.

Mindbody shares jumped to $36.20 early in Monday’s session, an increase of 66.67%.

Mindbody stock was $38.10 when the convertible notes priced.

© 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.