By Abigail W. Adams
Portland, Me., March 3 – Fastly Inc. priced an upsized $825 million of five-year convertible notes after the market close on Tuesday at par with a coupon of 0% and an initial conversion premium of 45%, according to a market source.
Pricing came at the rich end of talk for a coupon of 0% to 0.25% and at the cheap end of talk for 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 an upsized greenshoe of $123.75 million.
The initial size of the offering was $750 million with a greenshoe of $112.5 million.
The notes are non-callable until March 20, 2024 and then subject to a 130% hurdle.
They are putable upon a fundamental change.
The notes will be settled in cash, shares or a combination of both at the company’s option.
Net proceeds are expected to be $807.8 million or will be $929.1 million if the greenshoe is exercised in full.
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.
| Issuer: | Fastly Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $825 million
|
| Greenshoe: | $123.75 million
|
| Maturity: | March 15, 2026
|
| Bookrunner: | Morgan Stanley & Co. LLC
|
| Coupon: | 0%
|
| Price: | Par
|
| Yield: | 0%
|
| Conversion premium: | 45%
|
| Conversion price: | $102.80
|
| Conversion rate: | 9.7272
|
| Call options: | Non-callable until March 20, 2024 and then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | March 2
|
| Settlement date: | March 5
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 0% to 0.25% and initial conversion premium of 45% to 50%
|
| Stock symbol: | NYSE: FSLY
|
| Stock price: | $70.90 at market close March 2
|
| Market capitalization: | $8.05 billion
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
