Wix.com talks $350 million five-year convertibles to yield 0%-0.5%, up 30%-35%

By Abigail W. Adams

Portland, Me., June 20 – Wix.com Ltd. plans to price $350 million of five-year convertible notes after the market close on Thursday with price talk for a coupon of 0% to 0.5% and an initial conversion premium of 30% to 35%, according to a market source.

J.P. Morgan Securities LLC and BofA Merrill Lynch are joint bookrunners for the Rule 144A deal, which carries a greenshoe of $52.5 million.

The notes are non-callable and have no put options. They are contingently convertible until Jan. 1, 2023.

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

In connection with the pricing, Wix.com will enter into capped call transactions with the initial purchasers and their affiliates.

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

Wix.com is a New York-based web development platform.

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