Limelight Networks talks $100 million five-year convertible notes at 3%-3.5%, up 27.5%-32.5%

By Abigail W. Adams

Portland, Me., July 22 – Limelight Networks Inc. plans to price $100 million of five-year convertible notes after the market close on Wednesday with price talk for a coupon of 3% to 3.5% and an initial conversion premium of 27.5% to 32.5%, according to a market source.

Goldman Sachs & Co. LLC is the bookrunner for the Rule 144A offering, which carries a greenshoe of $15 million.

The notes are contingently convertible until May 1, 2025.

The securities are non-callable until Aug. 4, 2023 and then subject to a 130% hurdle.

The notes are putable upon a fundamental change. There is dividend protection.

In connection with the pricing, the company will enter into capped call transactions.

Proceeds will be used to cover the cost of the call spread and for general corporate purposes.

Limelight is a Scottsdale, Ariz.-based content delivery network service.

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