Altair greenshoe upsizes 0.25% convertibles due 2024 to $230 million

By Wendy Van Sickle

Columbus, Ohio, June 14 – Underwriters for Altair Engineering Inc.’s 0.25% convertible notes due June 1, 2024 fully exercised their $30 million greenshoe, lifting the total deal size to $230 million, according to a press release.

The company priced an upsized $200 million of the convertibles after the market close on June 5 at par with an initial conversion premium of 30%, as previously reported.

Pricing came at the midpoint of talk for a coupon of 0.125% to 0.375% and an initial conversion premium of 27.5% to 32.5%, according to a market source.

J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC and RBC Capital Markets, LLC are joint bookrunners for the registered offering.

The initial size of the offering was $175 million with a greenshoe of $26.25 million.

The notes are non-callable until June 6, 2022 and then subject to a 130% hurdle. They are putable upon a fundamental change.

The notes are contingently convertible until Dec. 1, 2023 subject to a 130% trigger.

Net proceeds are expected to be $192.8 million, or $221.9 million if the greenshoe is exercised in full.

Proceeds will be used to repay outstanding debt under its revolving credit facility, which had $14.8 million outstanding as of March 31.

Remaining proceeds will be used for acquisitions or investments in complementary businesses, general corporate purposes, including building an addition to its corporate headquarters, and sales and marketing activity.

Altair Engineering is a Troy, Mich.-based global technology company providing software and cloud solutions.

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