Lyft talks $650 million five-year convertible notes to yield 1.25%-1.75%, up 27.5%-32.5%

By Abigail W. Adams

Portland, Me., May 12 – Lyft Inc. plans to price $650 million of five-year convertible notes after the market close on Tuesday with price talk for a yield of 1.25% to 1.75% and an initial conversion premium of 27.5% to 32.5%, according to a market source.

J.P. Morgan Securities LLC (lead left) and Credit Suisse Securities (USA) LLC are active bookrunners for the Rule 144A offering, which carries a greenshoe of $97.5 million.

The notes are non-callable for three years and then subject to a 130% hurdle.

There is dividend and takeover protection.

In connection with the offering, the company will enter into capped call transactions with a cap price that will represent a premium of 150% over the last reported sales price of stock.

Proceeds will be used to cover the cost of the call spread and for general corporate purposes, which may include working capital, capital expenditures and potential acquisitions and strategic transactions.

Lyft is a San Francisco-based ridesharing company.

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