HomeAway plans $350 million five-year convertible senior notes to yield 0%-0.5%, up 27.5%-32.5%

By Rebecca Melvin

New York, March 25 - HomeAway Inc. was expected to price $350 million of five-year convertible senior notes after the market close Tuesday that were talked to yield 0% to 0.5% with an initial conversion premium of 27.5% to 32.5%, according to a syndicate source.

The Rule 144A deal has a $52.5 million over-allotment option.

Bookrunners are J.P. Morgan Securities LLC and Deutsche Bank Securities Inc.

The notes are non-callable for life. The deal was launched late Monday and as previously reported, they will be settled in cash, shares or a combination of cash and stock, and it is coming with a call spread, or convertible note hedge and warrant transactions, aimed at reducing potential dilution to the company's common stock upon conversion of notes and/or offset cash payments.

Austin, Texas-based HomeAway is an online vacation rental marketplace. It plans to use the proceeds to pay the net cost of the convertible note hedge transactions and for general corporate purposes.

© 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.