RealReal greenshoe lifts 1% convertibles due 2028 to $287.5 million

By Taylor Fox

New York, March 16 – Underwriters for RealReal Inc.’s 1% convertible notes due 2028 fully exercised their $37.5 million greenshoe, increasing the total deal size to $287.5 million, according to an 8-K filing with the Securities and Exchange Commission.

The company previously priced $250 million of the seven-year convertible notes at par with an initial conversion premium of 32.5%.

As previously reported, pricing came at the cheap end of talk for a coupon of 0.5% to 1% and an initial conversion premium of 32.5% to 37.5%.

Credit Suisse Securities (USA) LLC and BofA Securities Inc. were joint bookrunners for the Rule 144A offering.

The notes are non-callable until March 5, 2025 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.

In connection with the pricing of the notes, the company entered into capped call transactions with a cap price of $48, which represents a 100% premium over the last reported sales price of stock.

Net proceeds are expected to be $278.2 million, including the greenshoe.

Proceeds will be used to cover the cost of the call spread and for general corporate purposes.

The RealReal is a San Francisco-based online and brick-and-mortar luxury consignment marketplace.

© 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.