Trulia greenshoe exercise ups 2.75% convertibles to $230 million

By Jennifer Chiou

New York, Dec. 17 - Trulia Inc. announced that the $30 million over-allotment option has been exercised in full for its issue of seven-year convertible senior notes, bringing the total amount to $230 million.

The company priced the upsized notes at par after the market close on Dec. 10 to yield 2.75% with an initial conversion premium of 30%.

The Rule 144A offering was initially talked at $150 million in size. The greenshoe had been upsized from $22.5 million.

As reported, pricing came at the cheap end of talk, which was for a 2.25% to 2.75% coupon and with an initial conversion premium of 30% to 35% premium.

J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and RBC Capital Markets LLC were joint bookrunners of the deal.

The notes are non-callable until Dec. 20, 2018 and then are provisionally callable if shares rise to at least 130% of the conversion price. There are no puts except a change-of-control put.

Up to $30 million of the proceeds will be used to repurchase shares of common stock from initial purchasers of the notes concurrently with the offering, and about $7.2 million will be used to repay amounts outstanding under the company's credit facility, which will be terminated.

Remaining proceeds will be used for working capital and other general corporate purposes, including potential acquisitions.

San Francisco-based Trulia is a real estate website that provides tools to research homes and neighborhoods.

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