Veritone plans $150 million five-year convertibles to yield 1.5%-2%, up 27.5%-32.5%

By Rebecca Melvin

Concord, N.H., Nov. 16 – Veritone Inc. intends to sell $150 million of convertible senior notes with a five-year tenor, according to a press release on Tuesday.

The Rule 144A deal has a $22.5 million greenshoe.

The notes, which were expected to price on Wednesday, were being talked at a yield of 1.5% to 2% and an initial conversion premium of 27.5% to 32.5%, according to a market source.

BofA Securities Inc. and UBS Securities LLC are the bookrunners.

The notes are non-callable for until Nov. 20, 2024 and are subsequently callable at a 130% price hurdle, which is to be in effect for at least 20 trading days out of 30 consecutive trading days.

Upon conversion, the notes may be settled in cash, the company’s common stock, or a combination of cash and the company’s common stock, at the company’s election.

In connection with the pricing of the notes, the company expects to enter into capped call transactions with one or more of the initial purchasers of the notes or their affiliates.

Establishing the initial hedges of the capped call transactions concurrently with the pricing of the notes may increase or reduce the size of any decrease in the market price of the company’s common stock. Unwinding of any hedge positions prior to maturity of the convertibles could also cause an increase or a decrease in the market price of the company’s common stock.

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