Fastly talks $750 million five-year convertible notes to yield 0%-0.25%, up 45%-50%

By Abigail W. Adams

Portland, Me., March 2 – Fastly Inc. plans to price $750 million of five-year convertible notes after the market close on Tuesday with price talk for a coupon of 0% to 0.25% and an initial conversion premium of 45% to 50%, according to a market source.

Morgan Stanley & Co. LLC is lead left bookrunner for the Rule 144A offering, which carries a greenshoe of $112.5 million.

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

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

Proceeds will be used for general corporate purposes, which may include acquisitions or strategic investments.

Fastly is a San Francisco-based cloud computing services provider.

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