Farfetch ups convertibles offering to $350 million, tightens talk

By Abigail W. Adams

Portland, Me., April 27 – Farfetch Ltd. upsized its planned offering of seven-year convertible notes, which is set to price after the market close, to $350 million and tightened talk to a coupon of 3.5% to 3.75% and an initial conversion premium of 35% to 37.5%, according to a market source.

The greenshoe was also upsized to $50 million.

Initial price talk was for a coupon of 3.5% to 4% and an initial conversion premium of 32.5% to 37.5%, according to a market source.

The initial size of the deal was $300 million with a greenshoe of $45 million.

J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC are joint bookrunners for the Rule 144A offering.

The notes are non-callable until May 6, 2024 and then subject to a 130% hurdle.

They are putable upon a fundamental change. There is dividend protection.

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

Proceeds will be used for general corporate purposes.

Farfetch is a London-based online luxury fashion retail platform.

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