MicroStrategy fully exercises greenshoe on 0.75% convertible notes

By Cady Vishniac

Detroit, Dec. 11 – MicroStrategy Inc. has fully exercised its $100 million greenshoe on its 0.75% convertible notes due 2025 for a total issuance of $650 million, according to a press release.

The company priced $550 million of the notes on Dec. 9 at the rich end of talk with a coupon of 0.75% and an initial conversion premium of 37.5%, as previously reported.

Price talk was for a coupon of 0.75% to 1.25% and an initial conversion premium of 32.5% to 37.5%, according to a market source.

Jefferies LLC was bookrunner for the Rule 144A offering.

The initial size of the offering was $400 million with a greenshoe of $60 million.

The notes are contingently convertible until June 15, 2025.

The convertibles are non-callable until Dec. 20, 2023 and are 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 $634.9 million.

Proceeds will be used to invest in bitcoin in accordance with its Treasury Reserve Policy and for general corporate purposes.

MicroStrategy is a Tysons Corner, Va.-based business intelligence and analytics company.

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