DocuSign talks $400 million five-year convertibles to yield 0.5%-1%, up 30%-35%

By Abigail W. Adams

Portland, Me., Sept. 11 – DocuSign, Inc. plans to price $400 million of five-year convertible notes after the market close on Thursday with price talk for a coupon of 0.5% to 1% and an initial conversion premium of 30% to 35%, according to a market source.

Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC are the joint bookrunners for the Rule 144A deal, which carries a greenshoe of $60 million.

In connection with the pricing, DocuSign will enter into capped call transactions with the initial purchasers and their affiliates.

Concurrently, selling stockholders are offering 8,060,550 shares of common stock in an underwritten public offering, which carries a greenshoe of 1,209,082 shares.

Proceeds will be used to cover the cost of the call spread and for general corporate purposes, which may include the acquisition of or investment in complementary technologies or businesses.

DocuSign is a San Francisco-based electronic signature technology and digital transaction management services company.

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