By Abigail W. Adams
Portland, Me., Jan. 15 – Alarm.com priced an upsized $435 million of five-year convertible notes after the market close on Thursday at par with a coupon of 0% and an initial conversion premium of 47.5%, according to a company news release.
Pricing came in line with tightened talk for a fixed coupon of 0% and at the rich end of revised talk for 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%.
J.P. Morgan Securities LLC and Barclays were joint bookrunners for the Rule 144A offering, which carries an upsized greenshoe of $65 million.
The initial size of the offering was $350 million with a greenshoe of $52.5 million.
The notes are non-callable until Jan. 20, 2024 and then subject to a 130% hurdle.
They are putable upon a fundamental change. There is dividend protection.
The notes will be settled in cash, shares or a combination of both at the company’s option.
Net proceeds are expected to be $421.3 million or will be $484.3 million if the greenshoe is exercised in full.
Proceeds will be used by the company to repay outstanding borrowings and terminate its credit agreement and for general corporate purposes, which may include acquisitions or strategic investments.
Alarm.com is a Tysons, Va.-based security technology company.
| Issuer: | Alarm.com
|
| Securities: | Convertible senior notes
|
| Amount: | $435 million
|
| Greenshoe: | $65 million
|
| Maturity: | Jan. 15, 2026
|
| Bookrunners: | J.P. Morgan Securities LLC and Barclays
|
| Coupon: | 0%
|
| Price: | Par
|
| Yield: | 0%
|
| Conversion premium: | 47.5%
|
| Conversion price: | $147.19
|
| Conversion rate: | 6.7939
|
| Call options: | Non-callable until Jan. 20, 2024 and then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | Jan. 14
|
| Settlement date: | Jan. 20
|
| Distribution: | Rule 144A
|
| Talk: | Revised talk for fixed coupon of 0% and initial conversion premium of 42.5% to 47.5%; initial talk for coupon of 0% to 0.5% and initial conversion premium of 37.5% to 42.5%
|
| Stock symbol: | Nasdaq: ALRM
|
| Stock price: | $99.79 at market close Jan. 14
|
| Market capitalization: | $4.9 billion
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
