By Abigail W. Adams
Portland, Me., Nov. 30 – Weibo Corp. priced $300 million of seven-year convertible notes prior to the market open on Thursday at par at the midpoint of talk with a coupon of 1.375% and an initial conversion premium of 35%, according to a company news release and a market source.
Price talk was for a coupon of 1.125% to 1.625% and an initial conversion premium of 32.5% to 37.5%.
Goldman Sachs & Co. LLC was sole bookrunner for the Rule 144A deal, which carries a greenshoe of $30 million.
The notes are subject to a clean-up call if less than 10% of the principal amount is outstanding or are callable upon a tax event.
The convertibles are putable on Dec. 6, 2027 or upon a fundamental change.
The notes will be settled in cash, shares or a combination of both at the company’s option.
The company entered into an ADS lending agreement to facilitate hedging activity with 6,233,785 ADSs borrowed from the company and placed at $10.19 per ADS in Securities and Exchange Commission-registered offerings.
Proceeds will be used to refinance a portion of the company’s 3.5% senior notes due 2024.
Weibo is a Beijing-based social media platform.
| Issuer: | Weibo Corp.
|
| Amount: | $300 million
|
| Greenshoe: | $30 million
|
| Issue: | Convertible senior notes
|
| Maturity: | Dec. 1, 2030
|
| Bookrunner: | Goldman Sachs & Co. LLC
|
| Coupon: | 1.375%
|
| Price: | Par
|
| Yield: | 1.375%
|
| Conversion premium: | 35%
|
| Conversion price: | $13.76
|
| Conversion rate: | 72.6929
|
| Call options: | Non-callable except for a clean-up call or upon a tax event
|
| Put options: | Putable on Dec. 6, 2027 or upon a fundamental change
|
| Pricing date: | Nov. 29
|
| Settlement date: | Dec. 4
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 1.125% to 1.625% and initial conversion premium of 32.5% to 37.5%
|
| Stock symbol: | Nasdaq: WB
|
| Stock reference price: | $10.19 in concurrent delta placement
|
| Market capitalization: | $2.59 billion
|
|
|
© 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.
