By Rebecca Melvin
New York, March 9 - TiVo Inc. priced an upsized $150 million of five-year convertible senior notes on Wednesday at par to yield 4% with an initial conversion premium of 27.5%, according to a news release.
The Rule 144A convertibles came at the rich end of talk, which was for a 4% to 4.5% coupon and a 22.5% to 27.5% initial conversion premium.
UBS Investment Bank is the bookrunner of the offering, for which there is an upsized $22.5 million greenshoe. The greenshoe was initially going to be $18 million in size.
The notes are non-callable for life with no puts, but there is takeover and dividend protection. The notes are convertible into shares of TiVo stock at a rate of 89.6359 shares per bond.
Proceeds are earmarked to fund intellectual property litigation and research and development spending and for general corporate purposes, which may include funding sales and marketing expenses, increasing working capital, making capital expenditures and potentially for strategic acquisitions.
TiVo is an Alviso, Calif.-based provider of technology and services for digital video recorders.
| Issuer: | TiVo Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $150 million, upsized from $120 million
|
| Greenshoe: | $22.5 million, upsized from $18 million
|
| Maturity: | March 15, 2016
|
| Bookrunner: | UBS Investment Bank
|
| Coupon: | 4%
|
| Price: | Par, $1,000
|
| Yield: | 4%
|
| Conversion premium: | 27.5%
|
| Conversion price: | $11.16
|
| Conversion ratio: | 89.6359 shares
|
| Call protection: | Non-callable for life
|
| Puts: | No puts
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Price talk: | 4%-4.5%, up 22.5%-27.5%
|
| Pricing date: | March 9
|
| Settlement date: | March 10
|
| Distribution: | Rule 144A
|
| Stock symbol: | Nasdaq: TIVO
|
| Stock reference price: | $8.75
|
| Market capitalization: | $1.02 billion
|
© 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.
