Fastly greenshoe increases convertible notes to $948.75 million

By Taylor Fox

New York, March 12 – Underwriters for Fastly Inc.’s 0% five-year convertible senior notes exercised their $123.75 million greenshoe, increasing the total deal size to $948.75 million, according to a news release.

Fastly previously priced an upsized $825 million of the convertible notes at par with an initial conversion premium of 45%.

As previously reported, 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.

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 $929.1 million.

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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