RealPage talks $300 million five-year convertible notes to yield 1.25%-1.75%, up 27.5%-32.5%

By Abigail W. Adams

Portland, Me., May 18 – RealPage, Inc. plans to price $300 million of five-year convertible notes after the market close on Tuesday with price talk for a coupon of 1.25% to 1.75% and an initial conversion premium of 27.5% to 32.5%, according to a market source.

Goldman Sachs & Co. LLC and BofA Securities Inc. are joint bookrunners for the registered offering, which carries a greenshoe of $45 million.

The notes are non-callable for three years and then subject to a 130% hurdle.

They will be settled in cash, shares or a combination of both at the company’s option.

In connection with pricing of the convertible notes, the company will enter into capped call transactions.

Concurrently, the company will price a secondary offering of common stock of up to $300 million.

Proceeds will be used to cover the cost of the call spread and for general corporate purposes.

RealPage is a Richardson, Tex.-based property management software company.

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