By Rebecca Melvin
New York, Nov. 17 - RightNow Technologies Inc. priced an upsized $150 million of 20-year convertible senior notes after the close of markets Tuesday at par to yield 2.5% with an initial conversion premium of 30%, according to a syndicate source.
The Rule 144A offering was originally going to be $125 million in size, and it came at the cheap end of talk for the coupon, which 2% to 2.5%, but beyond the rich end of talk for the premium, which was 23% to 27%.
There is a $25 million greenshoe.
Credit Suisse Securities was the bookrunner, with JMP Securities acting as the co-lead manager.
The notes will be non-callable until Nov. 20, 2015. There are investor puts in years five, 10 and 15.
Proceeds are earmarked for general corporate purposes, which may include financing potential acquisitions and strategic transactions, stock repurchases and working capital. A portion of the proceeds may be used for stock repurchases under the company's $25 million stock buyback program.
RightNow is a software company based in Bozeman, Mont.
| Issuer: | RightNow Technologies Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $150 million, upsized from $125 million
|
| Greenshoe: | $25 million
|
| Maturity: | Nov. 15, 2030
|
| Bookrunner: | Credit Suisse Securities
|
| Co-manager: | JMP Securities
|
| Coupon: | 2.5%
|
| Price: | Par
|
| Yield: | 2.5%
|
| Conversion premium: | 30%
|
| Conversion price: | $31.89
|
| Conversion ratio: | 31.36
|
| Call feature: | Non-callable until Nov. 20, 2015
|
| Puts: | In years five, 10 and 15
|
| Price talk: | 2%-2.5%, up 23%-27%
|
| Pricing date: | Nov. 16
|
| Settlement date: | Nov. 22
|
| Distribution: | Rule 144A
|
| Stock symbol: | Nasdaq: RNOW
|
| Stock reference price: | $24.53
|
| Market capitalization: | $757 million
|
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