By Paul A. Harris
Portland, Ore., Oct. 26 – Roblox Corp. priced a $1 billion issue of 8.5-year senior notes (Ba2/BB) at par to yield 3 7/8% on Tuesday, according to market sources.
The yield printed in the middle of yield talk in the 3 7/8% area and in line with initial guidance in the high 3% area.
Books were heard to have undergone a relatively slow build, with some investors professing reticence with pricing below 4%, a trader said.
However sufficient interest ultimately took hold, with the deal playing to as much as $1.8 billion of orders at the close of books, the source added.
Left bookrunner Morgan Stanley & Co. LLC will bill and deliver. Joint bookrunners were Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC.
San Mateo, Calif.-based online game platform plans to use the proceeds for general corporate purposes, which may include production and development, capital expenditures, investments, working capital, and potential acquisitions and strategic transactions.
| Issuer: | Roblox Corp.
|
| Amount: | $1 billion
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| Maturity: | May 1, 2030
|
| Securities: | Senior notes
|
| Left bookrunner: | Morgan Stanley & Co. LLC (bill and deliver)
|
| Joint bookrunners: | Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC
|
| Co-manager: | Mizuho Securities USA Inc.
|
| Coupon: | 3 7/8%
|
| Price: | Par
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| Yield: | 3 7/8%
|
| Spread: | 234 bps
|
| First call: | Nov. 1, 2024 at 101.938
|
| Trade date: | Oct. 26
|
| Settlement date: | Oct. 29
|
| Ratings: | Moody's: Ba2
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 3 7/8% area
|
| Marketing: | Roadshow
|
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