By Abigail W. Adams
Portland, Me., March 4 – Airbnb Inc. priced $2 billion of five-year convertible notes after the market close on Wednesday at par with a coupon of 0% and an initial conversion premium of 60%, according to a company news release.
Pricing came in line with talk for a fixed coupon of 0% and at the cheap end of talk for an initial conversion premium of 60% to 65%, according to a market source.
Morgan Stanley & Co. LLC was the lead left bookrunner for the Rule 144A offering, which does not carry a greenshoe.
The notes are non-callable until March 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.
In connection with the pricing of the notes, the company entered into capped call transactions with a cap price of $360.80, which represents a premium of 100% over the last reported sales price of stock.
Net proceeds are expected to be $1,979,000,000. Approximately $100.2 million of proceeds will be used to cover the cost of the call spread with the remaining amount used to repay debt.
Airbnb is a San Francisco-based online vacation rental marketplace.
| Issuer: | Airbnb Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $2 billion
|
| Greenshoe: | None
|
| Maturity: | March 15, 2026
|
| Bookrunner: | Morgan Stanley & Co. LLC
|
| Coupon: | 0%
|
| Price: | Par
|
| Yield: | 0%
|
| Conversion premium: | 60%
|
| Conversion price: | $288.64
|
| Conversion rate: | 3.4645
|
| Call options: | Non-callable until March 20, 2024 and then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | March 3
|
| Settlement date: | March 8
|
| Distribution: | Rule 144A
|
| Talk: | Fixed coupon of 0% and initial conversion premium of 60% to 65%
|
| Stock symbol: | Nasdaq: ABNB
|
| Stock price: | $180.40 at market close March 3
|
| Market capitalization: | $108.1 billion
|
|
|
© 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.
