MicroStrategy greenshoe increases 0% convertibles to $1.05 billion

By Rebecca Melvin

New York, Feb. 19 – Underwriters for MicroStrategy Inc.’s 0% six-year convertibles exercised their full $150 million greenshoe, increasing the total deal size to $1.05 billion, according to an 8-K filing with the Securities and Exchange Commission.

As previously reported, the company priced an upsized $900 million of the six-year convertible notes after the market close on Tuesday at par with a coupon of 0% and an initial conversion premium of 50%.

Pricing came at the rich end of talk for a coupon of 0% to 0.5% and an initial conversion premium of 45% to 50%.

Jefferies LLC was bookrunner for the Rule 144A deal.

The initial size of the offering was $600 million with a greenshoe of $90 million.

The notes are non-callable until Feb. 20, 2024 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.

Net proceeds will be $1 billion, including the greenshoe.

Proceeds will be used to acquire Bitcoin.

The company issued $650 million of convertible debt in December with the proceeds also used to purchase Bitcoin.

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

© 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.