LendingTree talks $500 million five-year convertible notes to yield 0.25%-0.75%, up 27.5%-32.5%

By Abigail W. Adams

Portland, Me., July 20 – LendingTree Inc. plans to price $500 million of five-year convertible notes after the market close on Tuesday with price talk for a coupon of 0.25% to 0.75% and an initial conversion premium of 27.5% to 32.5%, according to a market source.

BofA Securities Inc., Goldman Sachs & Co. LLC and SunTrust Robinson Humphrey Inc. are joint bookrunners for the Rule 144A deal, which carries a greenshoe of $75 million.

The notes are contingently convertible until March 13, 2025.

The convertibles are non-callable until July 20, 2023 and then subject to a 130% hurdle with a make-whole.

In connection with the pricing of the notes, the company will enter into convertible note hedge and warrant transactions.

Proceeds will be used to cover the cost of the call spread and repurchase a portion of the company’s outstanding 0.625% convertible notes due 2022 in privately negotiated transactions.

Remaining proceeds to be used for general corporate purposes, which may include potential acquisitions.

LendingTree is a Charlotte, N.C.-based online loan marketplace.

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