Spotify greenshoe lifts 0% exchangeable senior notes to $1.5 billion

By Taylor Fox

New York, March 2 – Underwriters for Spotify Technology SA’s 0% exchangeable senior notes exercised the deal’s full $200 million greenshoe, lifting the total deal size to $1.5 billion, according to a 6-K filing with the Securities and Exchange Commission.

As previously reported, Spotify originally sold $1.3 billion of five-year exchangeable notes into Spotify USA Inc. shares on Feb. 26 at par with an initial exchange premium of 70%.

Pricing came in line with talk for a fixed coupon of 0% and at the midpoint of talk for an initial exchange premium of 65% to 75%, according to a market source.

Morgan Stanley & Co. LLC was lead left bookrunner for the Rule 144A offering.

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

They are putable upon a fundamental change.

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

Net proceeds are expected to be $1.479 billion following the exercise of the greenshoe.

Proceeds will be used for general corporate purposes.

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

© 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.