Apptio talks $125 million five-year convertibles to yield 0.875% to 1.375%, up 27.5% to 32.5%

By Abigail W. Adams

Portland, Me., March 19 – Apptio Inc. plans to price $125 million in five-year convertible notes after the market close Tuesday with price talk for a coupon of 0.875% to 1.375% and an initial conversion premium of 27.5% to 32.5%, according to a market source.

Goldman Sachs & Co., J.P. Morgan Securities LLC and Morgan Stanley & Co. Inc. are lead bookrunners for the Rule 144A deal, which carries a greenshoe of $18.75 million.

Barclays Capital Inc., Jefferies & Co., RBC Capital Markets Corp., and BofA Merrill Lynch are passive bookrunners.

The notes are non-callable for three-years and then at a 130% hurdle with a make-whole. There is takeover protection.

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

In connection with the pricing, Apptio will enter into capped call transactions.

Proceeds will be used to cover the cost of the call spread and for general corporate purposes.

Apptio is a Bellevue, Wash.-based technology business management software 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.