Redfin greenshoe lifts 1.75% five-year convertibles to $143.75 million

By Marisa Wong

Morgantown, W.Va., July 23 – The underwriters of Redfin Corp.’s recent offering of 1.75% five-year convertible notes exercised their $18.75 million over-allotment option in full, bringing the total issue size to $143.75 million, according to an 8-K filing with the Securities and Exchange Commission.

Redfin priced $125 million of the five-year convertible notes after the market close on July 18 at par with a coupon of 1.75% and an initial conversion premium of 30%, as previously reported.

Pricing came at the rich end of talk for a coupon of 1.75% to 2.25% and at the midpoint of talk for an initial conversion premium of 27.5% to 32.5%, according to a market source.

Goldman Sachs & Co. LLC, BofA Merrill Lynch and RBC Capital Markets LLC acted as joint bookrunners for the registered offering.

The convertible notes were priced concurrently with a common stock offering of 4,205,510 shares, which priced at $23.50 per share. The stock sale carried a greenshoe of 630,826 shares, which was also fully exercised.

The convertible notes are non-callable until July 20, 2021 and then may be redeemed subject to a 130% hurdle. Holders may require the company to repurchase the notes upon a fundamental change.

The notes are subject to contingent conversion until April 15, 2023.

Proceeds from the combined offerings will be used for working capital and other general corporate purposes, which may include technology development and marketing activities, general and administrative expenses and capital expenditures.

Redfin may also use a portion of proceeds to invest in or acquire third-party businesses, products, services, technologies or other assets.

Seattle-based Redfin is a technology-based residential real estate brokerage.

© 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.