TiVo greenshoe exercised, increases convertibles to $230 million

By Marisa Wong

Madison, Wis., Sept. 23 – TiVo Inc. said it closed its previously announced offering of seven-year convertible senior notes. The company issued $230 million of the notes, including $30 million from a fully exercised greenshoe, according to a press release.

TiVo priced $200 million of the seven-year convertibles at par to yield 2% with an initial conversion premium of 30% on Sept. 16.

Pricing of the Rule 144A deal came at the midpoint of 1.75% to 2.25% coupon talk and at the cheap end of 30% to 35% premium talk.

The deal was sold via bookrunners Barclays and Deutsche Bank Securities Inc.

Concurrently with the deal, the company entered into convertible note hedge and warrant transactions, or a call spread, which boosts the initial conversion premium from the issuer’s perspective to 75%, given a strike on the warrant transactions of $24.00 per share initially.

The bonds are non-callable for life with no puts. There is takeover and dividend protection, and settlement will be made in cash and shares.

The majority of the proceeds are earmarked for share repurchases, including about $42 million of concurrent share repurchase, for general corporate purposes and to fund the net cost of a call spread.

TiVo is an Alviso, Calif.-based provider of technology and services for digital video recorders.

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