By Ronda Fears
Nashville, Aug. 20 - aQuantive Inc. sold $70 million of 20-year convertible senior unsecured notes at par to yield 2.25% with a 47.5% initial conversion premium via sole bookrunner Thomas Weisel Partners.
The Rule 144A deal sold at the middle of yield talk for a 2.0% to 2.5% coupon and at the aggressive end of premium guidance of 42.5% to 47.5%.
The Seattle-based digital marketing and interactive advertising firm said proceeds would be used to redeem the convertible notes issued in conjunction with its recent acquisition of SBI.Razorfish - an internet marketing and consulting firm - and for general corporate purposes.
aQuantive closed the $160 million purchase in July, financing it with $85 million in cash and $75 million in convertible notes. The company said the acquisition is expected to contribute $41 million to $43 million in revenue and $3 million to $4 million in EBITDA during the balance of 2004.
Terms of the deal are:
| Issuer: | aQuantive Inc.
|
| Issue: | Convertible senior unsecured notes
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| Bookrunners: | Thomas Weisel Partners
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| Amount: | $70 million
|
| Greenshoe: | $10 million
|
| Maturity: | Aug. 15, 2024
|
| Coupon: | 2.25%
|
| Price: | Par
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| Yield: | 2.25%
|
| Conversion premium: | 47.5%
|
| Conversion price: | $12.98
|
| Conversion ratio: | 77.0416
|
| Contingent conversion: | No
|
| Contingent payment: | No
|
| Dividend protection: | Yes, conversion ratio adjustment
|
| Takeover protection: | Yes, conversion ratio adjustment
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| Call: | Non-callable for 5 years
|
| Put: | In years 5, 10 and 15
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| Price talk: | 2.0-2.5%, up 42.5-47.5%
|
| Pricing date: | Aug. 19
|
| Settlement date: | Aug. 24
|
| Distribution: | Rule 144A
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