By Ronda Fears
Nashville, June 12 - RealNetworks Inc. sold $100 million of seven-year convertible subordinated notes at par to yield 0% with a 33% initial conversion premium in the Rule 144A market via lead manager Goldman Sachs & Co.
The issue sold at the aggressive end of guidance for a yield of 0% with a 28% to 33% initial conversion premium.
The Seattle-based software and Internet media firm said it plans to use proceeds for general corporate purposes, acquisitions and/or joint ventures and working capital.
Terms of the deal are:
Issuer: RealNetworks Inc.
| Issue: | Convertible subordinated notes
|
| Lead manager: | Goldman Sachs
|
| Amount | $100 million
|
| Greenshoe: | $10 million
|
| Maturity: | June 15, 2010
|
| Coupon: | 0%
|
| Price: | Par
|
| Yield: | 0%
|
| Conversion premium: | 33%
|
| Price talk: | 0%, up 28-33%
|
| Conversion price: | $9.30
|
| Conversion ratio: | 107.5269
|
| Call: | Non-callable for five years
|
| Put: | In year five
|
| Contingent conversion: | 110%
|
| Pricing date: | June 11 after close
|
| Settlement: | June 17
|
| Distribution: | Rule 144A
|
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