Apptio greenshoe ups 0.875% five-year convertibles to $143.75 million

By Wendy Van Sickle

Columbus, Ohio, March 23 – The initial purchasers for Apptio Inc.’s 0.875% convertible notes due April 1, 2023 fully exercised their $18.75 million over-allotment option, bringing the total deal size to $143.75 million, according to a press release.

As previously reported, the company priced $125 million of the convertibles after the market close on Tuesday with an initial conversion premium of 30%.

Pricing came at the rich end of talk for a coupon of 0.875% to 1.375% and at the mid-point of talk for an initial conversion premium of 27.5% to 32.5%, according to a market source.

Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. Inc. and Barclays are the lead bookrunners for the Rule 144A deal.

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

The notes are non-callable for three-years and then subject to 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.

Up to $14.9 million of the proceeds will be used to cover the cost of the call spread.

The remaining amount will be used for general corporate purposes, which may include potential acquisitions and strategic transactions.

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

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