Unity Software offers $1.5 billion convertibles due 2026; talk 0%-0.25% coupon, up 47.5%-52.5%

Chicago, Nov. 15 – Unity Software Inc. seeks to place $1.5 billion of convertible senior notes due 2026, according to a press release.

The company is granting the initial purchasers a 13-day option to issue an additional $225 million of notes.

A market source noted that talk on the notes was for a coupon of 0% to 0.25% and an initial conversion premium of 47.5% to 52.5%.

At the issuer’s election, conversions can be settled in cash, shares or a combination of both.

The Rule 144A deal is being sold by Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC.

A portion of the proceeds will be used to pay the cost of capped call transactions. Remaining proceeds will be used for general corporate purposes and for acquisitions or strategic investments in complementary businesses or technologies.

The capped call transactions will cover the number of shares underlying the notes.

Unity creates and operates real-time 3D content. The company is based in San Francisco.

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