Lyft talks $400 million five-year convertible notes to yield 0.625%-1.125%, up 27.5%-32.5%

By Abigail W. Adams

Portland, Me., Feb. 21 – Lyft Inc. plans to price $400 million of five-year convertible notes after the market close on Thursday with price talk for a coupon of 0.625% to 1.125% and an initial conversion premium of 27.5% to 32.5%, according to a market source.

BofA Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BMO Capital Markets Corp., KeyBanc Capital Markets Inc., RBC Capital Markets LLC and TD Securities (USA) LLC are bookrunners for the Rule 144A deal, which carries a greenshoe of $60 million.

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

They are putable upon a fundamental change.

The notes will be settled in cash up to the principal amount with remaining amounts to be settled in cash, shares or a combination of both.

In connection with the offering, the company will enter into capped call transactions.

The company will repurchase a portion of its 1.5% convertible notes due 2025 in privately negotiated transactions.

Proceeds will be used to cover the cost of the call spread, to fund the repurchase of the 1.5% convertible notes and to purchase up to $50 million in stock from the initial purchasers of the notes.

Remaining proceeds will be used for general corporate purposes.

Lyft is a San Francisco-based ridesharing company.

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