New Relic talks $435 million five-year convertible notes to yield 0.25% to 0.75%, up 25% to 30%

By Abigail W. Adams

Portland, Me., May 14 – New Relic Inc. plans to price $435 million of five-year convertible notes after the market close on Tuesday with price talk for a coupon of 0.25% to 0.75% and an initial conversion premium of 25% to 30%, according to a market source.

Morgan Stanley & Co. Inc. and Goldman Sachs & Co. are joint bookrunners for the Rule 144A deal, which carries a greenshoe of $65.25 million.

KeyBanc Capital Markets Inc. and JMP Securities LLC are co-managers.

The notes are non-callable. There is standard dividend and takeover protection.

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

In connection with the offering, New Relic will enter into capped call transactions.

Proceeds will be used to cover the cost of the call spread and for general corporate purposes including the acquisition of complementary businesses or technologies, according to a company release.

New Relic is a San Francisco-based software analytics 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.