Altair greenshoe increases 1.75% convertibles to $230 million

By Wendy Van Sickle

Columbus, Ohio, June 24 – Altair Engineering Inc.’s 1.75% five-year convertible notes’ $30 million greenshoe was fully exercised, bringing the total size of the deal to $230 million, according to a news release Friday.

The company priced an original $200 million of the convertibles after the market close on June 9 at par with an initial conversion premium of 30%.

Pricing came at the cheap end of talk for a coupon of 1.25% to 1.75% and at the rich end of talk for an initial conversion premium of 25% to 30%, as reported by Prospect News.

J.P. Morgan Securities LLC was bookrunner for the Rule 144A offering.

The notes are non-callable until June 20, 2025 and then subject to a 130% hurdle.

There is takeover and dividend protection.

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

Altair entered into privately negotiated transactions to repurchase $148.2 million in principal of its 0.25% convertible notes due 2024 for $192.4 million in cash.

Net proceeds will be $223.9 million with the greenshoe exercised in full.

About $192.4 million of proceeds will be used to fund the purchase of the 0.25% notes with the remainder to be used for other corporate purposes, which may include potential acquisitions or strategic transactions and the repurchase of common stock.

Altair is a Troy, Mich.-based artificial intelligence software company.

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