Proofpoint plans $150 million five-year convertibles to yield 1%-1.5%, up 27.5%-32.5%

By Rebecca Melvin

New York, Dec. 4 - Proofpoint Inc. launched an offering of $150 million of five-year convertible bonds that were expected to price after the market close on Thursday and were talked to yield 1% to 1.5% with an initial conversion premium of 27.5% to 32.5%, according to market sources.

The Rule 144A offering has a $22.5 million greenshoe.

Joint bookrunners are Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc.

The notes will be non-callable until Dec. 20, 2016 and then provisionally callable if shares rise to 130% of the conversion price for a specified period. There is standard dividend and takeover protection.

The bonds will be settled in cash, shares or a combination.

Proceeds are expected to be used for general corporate purposes, including potential acquisitions and strategic transactions.

The bonds mature Dec. 15, 2018.

Proofpoint is a security-as-a-service vendor based in Sunnyvale, Calif.

© 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.