Opendoor talks $750 million five-year convertibles to yield 0%-0.5%, up 30%-35%

By Abigail W. Adams

Portland, Me., Aug. 17 – Opendoor Technologies Inc. plans to price $750 million of five-year convertible notes after the market close on Tuesday with price talk for a coupon of 0% to 0.5% and an initial conversion premium of 30% to 35%, according to a market source.

Citigroup Global Markets Inc. (lead left) and Morgan Stanley & Co. LLC are bookrunners for the Rule 144A offering, which carries a greenshoe of $112.5 million.

The notes are non-callable for three years and then subject to a 130% hurdle.

In connection with the offering, the company plans to enter into capped call transactions.

Proceeds will be used to cover the cost of the call spread and for general corporate purposes.

Opendoor is a San Francisco-based online residential real estate company.

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