By Rebecca Melvin
New York, Nov. 6 – LinkedIn Corp. priced $1.15 billion of five-year convertible senior notes after the market close on Wednesday at par to yield 0.5% and with an initial conversion premium of 35%, according to a syndicate source.
Pricing of the Rule 144A deal came at the cheap end of 0% to 0.5% coupon talk, and at the cheap end of premium talk that was revised lower during marketing to 35% to 40% from 40% to 45%.
The deal has a $172.5 million greenshoe and was sold via joint bookrunners Goldman Sachs & Co., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC.
The notes are non-callable with no puts. There is takeover and dividend protection.
In connection with the pricing of the notes, LinkedIn entered into convertible note hedge and warrant transactions, or a call spread, with initial purchasers of the bonds.
The strike on the warrant transactions is $381.82, which boosts the initial conversion premium from the issuer’s perspective to 75%.
About $70.2 million of the proceeds will be used to pay the net cost of the call spread with remaining proceeds earmarked for general corporate purposes.
LinkedIn is a business-oriented social networking service based in Mountain View, Calif.
| Issuer: | LinkedIn Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $1.15 billion
|
| Greenshoe: | $172.5 million
|
| Maturity: | Nov. 1, 2019
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
|
| Co-manager: | Allen & Co.
|
| Coupon: | 0.5%
|
| Price: | Par
|
| Yield: | 0.5%
|
| Conversion premium: | 35%
|
| Conversion price: | $294.54 per share
|
| Conversion ratio: | 3.3951 shares
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Calls: | Non-callable
|
| Call spread: | Yes, strike on the warrants is $381.82, boosting the premium to 75% from the issuer’s perspective
|
| Pricing date: | Nov. 5
|
| Settlement date: | Nov. 12
|
| Distribution: | Rule 144A
|
| Price talk: | 0%-0.5%, up 35%-40%
|
| Stock symbol: | Nasdaq: LNKD
|
| Stock price: | $218.18 at close Nov. 5
|
| Market capitalization: | $28.14 billion
|
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