RealPage’s $300 million convertible notes due 2022 talked to yield 1%-1.5%, up 27.5%-32.5%

By Stephanie N. Rotondo

Seattle, May 17 – RealPage Inc.’s previously announced $300 million offering of convertible senior notes due Nov. 15, 2022 is being talked with a 1% to 1.5% yield and an initial conversion premium of 27.5% to 32.5%, a market source reported Wednesday.

The Rule 144A offering was announced late Tuesday. Pricing is expected after Wednesday’s close.

Morgan Stanley & Co. LLC and BofA Merrill Lynch are the joint bookrunners.

There is a $45 million over-allotment option.

Conversions will be settled in cash, common stock or both, at the company’s option. The issue will be contingently convertible prior to May 15, 2022, or at any time after that date.

The company will enter into convertible note hedge transactions with one or more initial purchasers and/or their affiliates. The company also expects to enter into warrant transactions with options counterparties.

A portion of the deal’s proceeds will go toward the hedging transactions. The remaining funds will be used for general corporate purposes, which may include future acquisitions.

RealPage is a Richardson, Texas-based provider of software and data analytics to the real estate industry.

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