By Rebecca Melvin
New York, May 29 - FXCM Inc. priced an upsized $150 million of five-year convertible senior notes late Tuesday at par to yield 2.25% with an initial conversion premium of 32.5%, according to a news release.
The Rule 144A deal was initially talked at $125 million in size. There is a $22.5 million greenshoe that was upsized from an initially talked $18.75 million.
Pricing came at the tight, or rich, end of talk, which was for a 2.25% to 2.75% coupon and a 27.5% to 32.5% premium.
Credit Suisse Securities (USA) LLC, BofA Merrill Lynch and Morgan Stanley & Co. LLC were the joint bookrunners.
The notes are non-callable.
Proceeds will be used to repay borrowings under a revolving credit facility and for general corporate purposes, including potential future acquisitions, and also to pay the net cost of a call spread.
A call spread was established in connection with the notes offering under which FXCM entered into convertible note hedge and warrant transaction with affiliates of initial purchasers of the notes. The strike price on the warrant transactions will initially be $21.24, which raises the effective initial conversion premium from the issuer's perspective to 50%.
New York-based FXCM is an online provider of foreign exchange, trading and related services.
| Issuer: | FXCM Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $150 million, upsized from $125 million
|
| Greenshoe: | $22.5 million, upsized from $18.75 million
|
| Maturity: | June 15, 2018
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC
|
| Coupon: | 2.25%
|
| Price: | Par
|
| Yield: | 2.25%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $18.76
|
| Conversion ratio: | 53.2992 shares
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Takeover protection: | Yes
|
| Call spread: | Yes, warrant strike $21.24, boosting premium to 50% from the issuer's perspective
|
| Price talk: | 2.25%-2.75%, up 27.5%-32.5%
|
| Pricing date: | May 28
|
| Settlement date: | June 3
|
| Stock symbol: | Nasdaq: FXCM
|
| Stock reference price: | $14.16
|
| Distribution: | Rule 144A
|
| Market capitalization: | $524.9 million
|
© 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.
