By Abigail W. Adams
Portland, Me., May 13 – Lyft Inc. priced $650 million of five-year convertible notes after the market close on Tuesday at par at the midpoint of talk with a coupon of 1.5% and an initial conversion premium of 30%, according to a company news release.
Price talk was 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 were active bookrunners for the Rule 144A offering, which carries a greenshoe of $97.5 million.
The notes are non-callable until May 20, 2023 and then subject to a 130% hurdle over the conversion price.
The notes are putable upon a fundamental change.
There is takeover protection.
In connection with the offering, the company entered into capped call transactions with a cap price of $73.83, which represents a premium of 150% over the last reported sales price of stock.
Approximately $115.38 of net proceeds will be used to cover the cost of the call spread. Remaining proceeds will be used 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.
| Issuer: | Lyft Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $650 million
|
| Greenshoe: | $97.5 million
|
| Maturity: | May 15, 2025
|
| Bookrunners: | J.P. Morgan Securities LLC (lead left) and Credit Suisse Securities (USA) LLC
|
| Coupon: | 1.5%
|
| Price: | Par
|
| Yield: | 1.5%
|
| Conversion premium: | 30%
|
| Conversion price: | $38.39
|
| Conversion rate: | 26.0491
|
| Call options: | Non-callable until May 20, 2023 and then subject to a 130% hurdle over the conversion price
|
| Put options: | Upon a fundamental change
|
| Pricing date: | May 12
|
| Settlement date: | May 15
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 1.25% to 1.75% and initial conversion premium of 27.5% to 32.5%
|
| Stock symbol: | Nasdaq: LYFT
|
| Stock price: | $29.53 at market close May 12
|
| Market capitalization: | $8.8 billion
|
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