By Rebecca Melvin
New York, Nov. 7 - InvenSense Inc. priced an upsized $150 million of five-year convertible senior notes after the market close on Wednesday at par to yield 1.75% with an initial conversion premium of 37.5%, according to a news release.
The Rule 144A offering was initially talked at $125 million in size. A $25 million greenshoe was upsized from an initially talked $18.75 million.
Pricing came through the tight end of coupon talk, which was for 2% to 2.25% coupon, and at the tight end of 32.5% to 37.5% premium talk.
Goldman Sachs & Co. was the bookrunner of the non-callable bonds.
Proceeds are intended for general corporate purposes, including capital expenditures and working capital, and also to pay for the net cost of convertible note hedge and warrant transactions. This call spread boosts the initial conversion premium from the issuer's perspective to 80%.
InvenSense is a San Jose, Calif.-based maker of motion tracking devices in consumer electronics.
| Issuer: | InvenSense Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $150 million, upsized from $125 million
|
| Greenshoe: | $25 million, upsized from $18.75 million
|
| Maturity: | Nov. 1, 2018
|
| Bookrunner: | Goldman Sachs & Co.
|
| Coupon: | 1.75%
|
| Price: | Par
|
| Yield: | 1.75%
|
| Conversion premium: | 37.5%
|
| Conversion price: | $21.89
|
| Conversion ratio: | 45.6830 shares
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Net share settlement: | Yes
|
| Contingent conversion: | Yes
|
| Call spread: | Yes, boosts the effective premium to 80% from the issuer's perspective
|
| Price talk: | 2%-2.25%, up 32.5%-37.5%
|
| Pricing date: | Nov. 6
|
| Settlement date: | Nov. 13
|
| Stock symbol: | Nasdaq: INVN
|
| Stock reference price: | $15.92 at close Nov. 6
|
| Distribution: | Rule 144A
|
| Market capitalization: | $1.39 billion
|
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