By Abigail W. Adams
Portland, Me., Aug. 8 – Alteryx Inc. priced a $350 million tranche of five-year convertible notes and a $350 million tranche of seven-year convertible notes after the market close on Wednesday.
The five-year convertible notes priced at par with a coupon of 0.5% and an initial conversion premium of 50%.
Price talk was for a coupon of 0.25% to 0.75% and an initial conversion premium of 45% to 50%, according to a market source.
The seven-year convertible notes priced at par with a coupon of 1% and an initial conversion premium of 50%.
Price talk was for a coupon of 0.75% to 1.25% and an initial conversion premium of 45% to 50%.
Morgan Stanley & Co. LLC is the active bookrunner for the Rule 144A offering with each tranche carrying a greenshoe of $50 million. Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are joint bookrunners.
The notes are non-callable. They are putable upon a fundamental change.
In connection with the pricing of the notes, Alteryx will enter into capped call transactions with a cap price of $315.60, representing a premium of 150% over the last reported sales price of stock.
Net proceeds are expected to be $683.4 million or $781.2 million if the greenshoe is exercised in full.
Approximately $76.4 million of proceeds will be used to cover the cost of the call spread.
Alteryx will issue 2.2 million shares and use $145.4 million of proceeds to retire approximately $145.2 million of the principal amount of its 0.5% convertible notes due 2023 through individually negotiated transactions, according to the press release.
Remaining proceeds will be used for general corporate purposes, which may include acquisitions.
Alteryx is an Irvine, Calif.-based computer software company.
| Issuer: | Alteryx Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $700 million
|
| Greenshoe: | $100 million
|
| Bookrunners: | Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC
|
| Pricing date: | Aug. 7
|
| Settlement date: | Aug. 12
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: AYX
|
| Stock price: | $126.24
|
| Market capitalization: | $7.93 billion
|
|
|
| 2024 notes
|
| Amount: | $350 million
|
| Greenshoe: | $50 million
|
| Maturity: | Aug. 1, 2024
|
| Coupon: | 0.5%
|
| Price: | Par
|
| Yield: | 0.5%
|
| Conversion premium: | 50%
|
| Conversion price: | $189.36
|
| Conversion rate: | 5.2809
|
| Call options: | None
|
| Put options: | Upon a fundamental change
|
| Talk: | Coupon of 0.25% to 0.75% and initial conversion premium of 45% to 50%
|
|
|
| 2026 notes
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| Amount: | $350 million
|
| Greenshoe: | $50 million
|
| Maturity: | Aug. 1, 2026
|
| Coupon: | 1%
|
| Price: | Par
|
| Yield: | 1%
|
| Conversion premium: | 50%
|
| Conversion price: | $189.36
|
| Conversion rate: | 5.2809
|
| Call options: | None
|
| Put options: | Upon a fundamental change
|
| Talk: | Coupon of 0.75% to 1.25% and initial conversion premium of 45% to 50%
|
|
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