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RealReal talks $125 million five-year convertible notes to yield 2.75%-3.25%, up 25%-30%
By Abigail W. Adams
Portland, Me., June 10 – The RealReal Inc. plans to price $125 million of five-year convertible notes after the market close on Wednesday with price talk for a coupon of 2.75% to 3.25% and an initial conversion premium of 25% to 30%, according to a market source.
Morgan Stanley & Co. LLC is lead left bookrunner for the Rule 144A offering, which carries a greenshoe of $18.75 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.
In connection with the pricing of the notes, the company will enter into capped call transactions.
Proceeds will be used to cover the cost of the call spread, for working capital and for general corporate purposes, which may include acquisitions or strategic investments.
The RealReal is a San Francisco-based luxury goods e-commerce company.
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