Farfetch greenshoe ups 3.75% convertibles due 2027 to $400 million

By Wendy Van Sickle

Columbus, Ohio, April 30 – Underwriters for Farfetch Ltd.’s 3.75% convertible notes due May 1, 2027 fully exercised their $50 million greenhoe, lifting the total deal size to $400 million, according to a 6-K filing with the Securities and Exchange Commission.

The company priced $350 million of the convertibles after the market close on Monday with an initial conversion premium of 35%, as previously reported.

Tightened talk had been for a coupon of 3.5% to 3.75% and an initial conversion premium of 35% to 37.5%.

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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