Avalara talks $850 million five-year convertibles to yield 0%-0.5%, up 42.5%-47.5%

By Abigail W. Adams

Portland, Me., Aug. 9 – Avalara Inc. plans to price $850 million of five-year convertible notes after the market close on Tuesday with price talk for a coupon of 0% to 0.5% and an initial conversion premium of 42.5% to 47.5%, according to a market source.

Goldman Sachs & Co. LLC, BofA Securities Inc. and Citigroup Global Markets Inc. are joint bookrunners for the Rule 144A offering, which carries a greenshoe of $127.5 million.

The notes are non-callable for three years and then subject to a 130% hurdle.

There is takeover and dividend protection.

In connection with the offering, the company will enter into capped call transactions.

Proceeds will be used to cover the cost of the call spread and for general corporate purposes, which may include acquisitions or investments in complimentary technologies.

Avalara is a Seattle-based tax compliance software company.

© 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.