By Abigail W. Adams
Portland, Me., Nov. 15 – Quotient Technology Inc. priced $175 million in five-year convertible notes Tuesday night to yield 1.75% with an initial conversion premium of 40%.
Pricing came at the midpoint of coupon and the rich end of premium talk.
Price talk had been for a coupon of 1.5% to 2% and an initial conversion premium of 35% to 40%, according to market sources.
Morgan Stanley & Co. LLC is the bookrunner for the Rule 144A deal, which carries a $25 million greenshoe.
The notes are non-callable until Dec. 5, 2020 and then provisionally callable at par if the stock trades at or above 130% of the conversion price for 20 out of 30 trading days.
There is takeover protection with holders able to exercise a put at par.
Quotient anticipates $169.5 million in net proceeds from the deal which it will use for general corporate purposes and the repurchase of stock through an existing stock repurchase program, according to a company release.
Quotient is a first-time issuer of convertible notes.
Quotient is a Mountain View, Calif.-based digital promotion, media, and analytics company.
| Issuer: | Quotient Technology Inc.
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| Securities: | Convertible senior notes
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| Amount: | $175 million
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| Greenshoe: | $25 million
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| Maturity: | Dec. 1, 2022
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| Bookrunners: | Morgan Stanley & Co. LLC
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| Coupon: | 1.75%
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| Price: | Par
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| Conversion premium: | 40%
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| Conversion price: | $17.36
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| Conversion rate: | 57.6037
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| Call options: | Non-callable for three years, provisionally callable if the stock exceeds 130% conversion price for 20 out of 30 days
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| Put options: | Upon a fundamental change
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| Pricing date: | Nov. 14
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| Settlement date: | Nov. 17
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| Talk: | 1.5% to 2% yield, up 35% to 40%
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| Stock symbol: | NYSE: QUOT
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| Stock price: | $12.40 as of Nov. 14 close
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| Market capitalization: | $1.129 billion
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