By Stephanie N. Rotondo
Seattle, May 25 – LendingTree Inc. sold $265 million of 0.625% convertible senior notes due 2022 at par with an initial conversion premium of 32.5% on Wednesday, the company said in a press release on Thursday.
The deal came upsized from $200 million. The yield was priced in the middle of the 0.5% to 1% yield talk and at the rich end of the 27.5% to 32.5% premium talk.
BofA Merrill Lynch, Goldman Sachs & Co., RBC Capital Markets and SunTrust Robinson Humphrey Inc. are the joint bookrunners.
There is a $35 million over-allotment option, increased from $30 million.
Conversions will be settled in cash, common stock or a combination of the two, at the company’s election. The conversion rate is 4.8163 shares per each $1,000 of notes, or $207.63 a share.
Prior to Feb. 1, 2022, the bonds are contingently convertible if the stock hits a 130% price hurdle. After that date, the paper can be converted at any time.
In connection with the offering, the company entered into convertible note hedge and warrant transactions. The warrant strike price is $266.39 a share, a 70% premium over the May 24 closing price.
Proceeds will be used to cover the cost of the hedging transactions and for general corporate purposes, including working capital and potential acquisitions.
LendingTree is a Charlotte, N.C.-based online loan marketplace.
| Issuer: | LendingTree Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $265 million
|
| Greenshoe: | $35 million
|
| Maturity: | June 1, 2022
|
| Bookrunners: | BofA Merrill Lynch, Goldman Sachs & Co., RBC Capital Markets and SunTrust Robinson Humphrey Inc.
|
| Coupon: | 0.625%
|
| Price: | Par of $1,000
|
| Yield: | 0.625%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $207.63
|
| Conversion rate: | 4.8163 shares
|
| Contingent conversion: | Yes, at 130% stock price hurdle
|
| Pricing date: | May 24
|
| Settlement date: | May 31
|
| Talk: | 0.5% to 1% yield, up 27.5% to 32.5%
|
| Stock symbol: | Nasdaq: TREE
|
| Stock price: | $156.70 as of May 24 close
|
| Market capitalization: | $1.87 billion
|
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