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Alarm.com talks upsized $400 million five-year convertibles at coupon of 0%, up 42.5%-47.5%
By Abigail W. Adams
Portland, Me., Jan. 14 – Alarm.com upsized its offering of five-year convertible notes to $400 million, from $350 million and tightened talk to a fixed coupon of 0% and an initial conversion premium of 42.5% to 47.5%, according to a market source.
Initial talk was for a coupon of 0% to 0.5% and an initial conversion premium of 37.5% to 42.5%.
The offering is set to price after the market close on Thursday.
J.P. Morgan Securities LLC and Barclays were joint bookrunners for the Rule 144A offering, which carries an upsized greenshoe of $60 million, from $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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