Spotify talks $1.3 billion five-year exchangeable notes to yield 0%, up 65%-75%

By Abigail W. Adams

Portland, Me., Feb. 24 – Spotify Technology SA plans to price $1.3 billion of five-year notes exchangeable for Spotify USA Inc. stock after the market close on Thursday with price talk for a fixed coupon of 0% and an initial exchange premium of 65% to 75%, according to a market source.

Morgan Stanley & Co. LLC is lead left bookrunner for the Rule 144A offering, which carries a greenshoe of $200 million.

The notes are callable on or after March 20, 2024 subject to a 130% hurdle.

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

Proceeds will be used for general corporate purposes.

Spotify is a New York-based audio streaming and media services provider.

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