By Rebecca Melvin
New York, March 7 - Priceline.com Inc. priced $875 million of six-year convertible notes in an overnight deal with a 1% coupon and a 50% initial conversion premium, according to a syndicate source.
The Rule 144A offering, which was distributed via bookrunner Goldman Sachs & Co., was reoffered at a price of 99.5, which was the tight end of a reoffer talk of 98.5 to 99.5.
The notes have a $125 million greenshoe and will be non-callable for life. The bond matures March 15, 2018. There is dividend and takeover protection.
Proceeds are expected to be used to repurchase up to $200 million of common stock in privately negotiated, off-market transactions and also for general corporate purposes, which may include repurchasing shares in the open market or in private transactions, and to repay outstanding debt and for corporate acquisitions.
In connection with the offering, the company's board authorized a $200 million share repurchase program.
Priceline is a Norwalk, Conn.-based online travel agency.
| Issuer: | Priceline.com Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $875 million
|
| Greenshoe: | $125 million
|
| Maturity: | March 15, 2018
|
| Bookrunner: | Goldman Sachs & Co.
|
| Coupon: | 1%
|
| Price: | 99.5
|
| Conversion premium: | 50%
|
| Conversion price: | $944.61
|
| Conversion ratio: | 1.0586
|
| Call protection: | Non-callable
|
| Puts: | No puts
|
| Price talk: | 1%, up 50%; reoffer price 98.5-99.5
|
| Pricing date: | March 7
|
| Settlement date: | March 12
|
| Distribution: | Rule 144A
|
| Stock symbol: | Nasdaq: PCLN
|
| Stock reference price: | $629.74
|
| Market capitalization: | $31.8 billion
|
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