Chicago, Feb. 23 – Lyft Inc. priced $400 million of five-year convertible senior notes with a 0.625% coupon and an initial conversion premium of 32.5% after the market closed on Thursday, according to a press release.
Pricing came at the rich end of talk for a coupon 0.625% to 1.125% and an initial conversion premium of 27.5% to 32.5%.
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 13-day 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 entered into capped call transactions at an initial cap price of $31.82 per share, or at a premium of 100% over the $15.91 share price on Feb. 22.
The company will repurchase a portion of its 1.5% convertible notes due 2025 in privately negotiated transactions.
Proceeds of $41.6 million will be used to cover the cost of the call spread, $350 million will be used to fund the repurchase of $356.8 million of the 1.5% convertible notes and $50 million will be used to purchase 3.14 million shares of the class A common stock from the initial purchasers of the notes.
Remaining proceeds will be used for general corporate purposes, which may include repurchases of additional 2025 notes, working capital, capital expenditures, and potential acquisitions and strategic transactions.
If the greenshoe is exercised, the company plans to enter into additional capped call transactions.
Lyft is a San Francisco-based ridesharing company.
| Issuer: | Lyft Inc.
|
| Amount: | $400 million
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| Greenshoe: | $60 million
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| Issue: | Convertible senior notes
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| Maturity: | March 1, 2029
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| Bookrunners: | 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
|
| Coupon: | 0.625%
|
| Price: | Par
|
| Yield: | 0.625%
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| Conversion premium: | 32.5%
|
| Conversion price: | $21.08
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| Conversion rate: | 47.4366
|
| Call features: | At par starting March 5, 2027, subject to 130% hurdle
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| Puts: | Upon fundamental change
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| Trade date: | Feb. 22
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| Settlement date: | Feb. 27
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| Distribution: | Rule 144A
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| Price talk: | Coupon of 0.625% to 1.125% and initial conversion premium of 27.5% to 32.5%
|
| Stock symbol: | Nasdaq: LYFT
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| Stock price: | $15.91 on Feb. 22
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| Market capitalization: | $6.36 billion
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