NQ Mobile plans to price $150 million five-year convertibles to yield 3.5%-4%, up 25%-30%

By Rebecca Melvin

New York, Oct. 7 - NQ Mobile Inc. plans to price up to $150 million of five-year convertible senior notes after the market close Tuesday that were talked to yield 3.5% to 4% with an initial conversion premium of 25% to 30%, according to a market source.

The Rule 144A notes will be convertible into NQ's American Depositary Shares, each representing five class A common shares of NQ.

The offering has a $22.5 million greenshoe and was being sold via Morgan Stanley & Co. International plc and Deutsche Bank Securities Inc.

The notes are non-callable until Oct. 20, 2016 and then are provisionally callable if shares rise to 130% of the conversion price.

There is an investor put at year three. Settlement will be for shares only. There is also takeover and dividend protection.

Proceeds are earmarked for general corporate purposes, including working capital needs and potential acquisitions of complementary businesses.

NQ is a provider of mobile internet services and maintains dual headquarters in Dallas and Beijing.

© 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.