Perficient talks $125 million five-year convertible notes to yield 1.875%-2.375%, up 25%-30%

By Abigail W. Adams

Portland, Me., Sept. 4 – Perficient Inc. plans to price $125 million of five-year convertible notes after the market close on Wednesday with price talk for a coupon of 1.875% to 2.375% and an initial conversion premium of 25% to 30%, according to a market source.

Jefferies & Co. and Nomura are the joint bookrunners for the Rule 144A deal, which carries a greenshoe of $18.75 million.

The notes are contingently convertible until March 15, 2023. Conversion will be settled in cash, shares or a combination of both at the company’s option.

In connection with the offering, Perficient will enter into hedge transactions, which are expected to cover the number of shares of common stock underlying the notes, according to a company news release.

Proceeds will be used to cover the cost of the call spread, to repay approximately $56 million in borrowings under its revolving credit facility, to repurchase common stock from the initial purchasers of the convertible notes and for general corporate purposes.

Perficient is a St. Louis-based digital transformation consulting firm serving enterprise customers.

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