Rapid7 talks $250 million long five-year convertibles to yield 1.25%-1.75%, up 27.5%-32.5%

By Abigail W. Adams

Portland, Me., Sept. 5 – Rapid7 Inc. plans to price a $250 million offering of convertible notes due March 15, 2029 after the market close on Tuesday with price talk for a coupon of 1.25% to 1.75% and an initial conversion premium of 27.5% to 32.5%, according to a market source.

Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are bookrunners for the Rule 144A offering, which carries a greenshoe of $37.5 million.

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

There is dividend and takeover protection.

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

In connection with the offering, the company will enter into capped call transactions.

The company will also enter into privately negotiated transactions to repurchase a portion of its 2.25% convertible notes due 2025.

Proceeds will be used to fund the cost of the call spread and the repurchase of the 2025 notes.

Remaining proceeds will be used for general corporate purposes.

Rapid7 is a Boston-based cybersecurity company.

© 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.