MicroStrategy greenshoe ups 0.875% convertibles to $603.75 million

By Marisa Wong

Los Angeles, March 19 – The initial purchasers of MicroStrategy Inc.’s recently priced 0.875% convertible notes due 2031 exercised their $78.75 million over-allotment option in full, bringing the total size of the issuance to $603.75 million, according to a Tuesday press release.

MicroStrategy priced an upsized $525 million of the seven-year convertible notes after the market close on March 14 at par at the cheap end of talk with a coupon of 0.875% and an initial conversion premium of 40%, as previously reported.

Price talk was for a coupon of 0.375% to 0.875% and an initial conversion premium of 40% to 45%.

Citigroup Global Markets Inc. was the bookrunner for the Rule 144A offering.

The initial size of the offering was $500 million with a greenshoe of $75 million.

The notes are non-callable until March 22, 2028 and then subject to a 130% hurdle.

They are putable on Sept. 15, 2028 or 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 $592.3 million.

Proceeds will be used to purchase Bitcoin and for general corporate purposes.

The deal closed on Monday.

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

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