Okta plans $1 billion six-year convertible notes to yield 0%-0.5%, up 42.5%-47.5%

By Rebecca Melvin

New York, Sept. 3 – Okta Inc. plans to price $1 billion of six-year convertible notes after the market close on Wednesday with price talk for a coupon of 0% to 0.5% and an initial conversion premium of 42.5% to 47.5%, according to a market source.

There is a $150 million greenshoe.

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

The notes are non-callable for three years and are provisionally callable thereafter at a price hurdle of 130%. There are no investor puts, and there is standard dividend and takeover protection.

In connection with the pricing, Okta will enter into new capped call transactions. The proceeds will cover these costs as well as the repurchase of Okta’s existing 2023 notes and for general corporate purposes.

Okta is a San Francisco-based enterprise identity provider. The Okta Identity Cloud connects enterprises with their employees, partners, and customers.

© 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.