Alarm.com talks $350 million five-year convertible notes to yield 0%-0.5%, up 37.5%-42.5%

By Abigail W. Adams

Portland, Me., Jan. 13 – Alarm.com plans to price $350 million five-year convertible notes after the market close on Thursday with price talk for a coupon of 0% to 0.5% and an initial conversion premium of 37.5% to 42.5%, according to a market source.

J.P. Morgan Securities LLC and Barclays were joint bookrunners for the Rule 144A offering, which carries a greenshoe of $52.5 million.

The notes are non-callable for three years and then subject to a 130% hurdle.

There is takeover and dividend protection.

The notes will be settled in cash, shares or a combination of both at the company’s option.

Proceeds will be used to repay outstanding borrowings and terminate its credit agreement and for general corporate purposes.

Alarm.com is a Tysons, Va.-based security technology company.

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