Envestnet talks $300 million five-year convertible notes to yield 1.25% to 1.75%, up 30% to 35%

By Abigail W. Adams

Portland, Me., May 21 – Envestnet Inc. plans to price $300 million of five-year convertible notes after the market close on Tuesday with price talk for a coupon of 1.25% to 1.75% and an initial conversion premium of 30% to 35%, according to a market source.

Goldman Sachs & Co., Morgan Stanley & Co. Inc and J.P. Morgan Securities LLC are bookrunners for the Rule 144A deal, which carries a greenshoe of $45 million.

The notes are non-callable for three years, then may be redeemed subject to a 130% hurdle.

Conversions will be settled in cash, shares or a combination of both at the company’s option, according to a company news release.

Proceeds will be used to repay the outstanding principal balance of its revolving credit facility, for general corporate purposes and for the opportunistic repurchase or retirement of the company’s outstanding 1.75% convertible notes due 2019.

Envestnet is a Chicago-based provider of financial and wealth management technology and services.

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