By Abigail W. Adams
Portland, Me., Sept. 9 – Radius Global Infrastructure Inc. priced an upsized $230 million of five-year convertible notes after the market close on Wednesday at the cheap end of talk with a coupon of 2.5% and an initial conversion premium of 30%, according to a company news release.
Price talk was for a coupon of 2% to 2.5% and an initial conversion premium of 30% to 35%, according to a market source.
Morgan Stanley & Co. LLC (lead left) and Goldman Sachs & Co. LLC were joint bookrunners for the Rule 144A offering, which carries an upsized greenshoe of $34.5 million.
The initial size of the offering was $200 million with a greenshoe of $30 million.
The notes are non-callable until Sept. 20, 2024 and then subject to a 130% hurdle.
The notes are putable upon a fundamental change. There is dividend protection.
The notes will be settled in cash, shares or a combination of both at the company’s option.
The notes will be guaranteed by Radius’ wholly owned subsidiary, APW OpCo LLC.
In connection with the offering, the company entered into capped call transactions with a cap price of $34.80, which represents a 100% premium over the last reported sales price of stock.
Net proceeds are expected to be $221.6 million, assuming no exercise of the greenshoe.
Approximately $28.9 million of net proceeds will be used to cover the cost of the call spread with the remaining amount to be used for acquisitions and for general corporate purposes.
Radius is a New York-based owner of a portfolio of triple net rental streams from wireless operators and tower companies.
| Issuer: | Radius Global Infrastructure Inc.
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| Guarantor: | APW OpCo LLC
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| Securities: | Convertible senior notes
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| Amount: | $230 million
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| Greenshoe: | $34.5 million
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| Maturity: | Sept. 15, 2026
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| Bookrunners: | Morgan Stanley & Co. LLC (lead left) and Goldman Sachs & Co. LLC
|
| Coupon: | 2.5%
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| Price: | Par
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| Yield: | 2.5%
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| Conversion premium: | 30%
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| Conversion price: | $22.62
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| Conversion rate: | 44.2087
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| Call options: | Non-callable until Sept. 20, 2024 and then subject to a 130% hurdle
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| Put options: | Upon a fundamental change
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| Pricing date: | Sept. 8
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| Settlement date: | Sept. 13
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| Distribution: | Rule 144A
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| Talk: | Coupon of 2% to 2.5% and initial conversion premium of 30% to 35%
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| Stock symbol: | Nasdaq: RADI
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| Stock price: | $17.40 at market close Sept. 9
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| Market capitalization: | $1.32 billion
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