By Abigail W. Adams
Portland, Me., May 11 – Desktop Metal Inc. priced a downsized $100 million of five-year convertible notes after the market close on Tuesday at par with a coupon of 6% and an initial conversion premium of 25%, according to a company news release.
Pricing came in line with widened talk for a coupon of 6% and an initial conversion premium of 25%, according to a market source.
Initial price talk was for a coupon of 5% to 5.5% and an initial conversion premium of 30% to 35%.
J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Credit Suisse Securities (USA) LLC were bookrunners for the Rule 144A offering, which carries a downsized greenshoe of $15 million
The initial size of the offering was $150 million with a greenshoe of $22.5 million.
The notes are non-callable until May 20, 2025 and then subject to a 130% hurdle with settlement in cash.
They are putable upon a fundamental change.
Net proceeds are expected to be $96.7 million or will be $111.3 million if the greenshoe is exercised in full.
Proceeds will be used for working capital and general corporate purposes.
Desktop Metal is a Cambridge, Mass.-based designer of 3D printing systems.
| Issuer: | Desktop Metal Inc.
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| Amount: | $100 million
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| Greenshoe: | $15 million
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| Issue: | Convertible senior notes
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| Maturity: | May 15, 2027
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| Bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Credit Suisse Securities (USA) LLC
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| Coupon: | 6%
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| Price: | Par
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| Yield: | 6%
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| Conversion premium: | 25%
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| Conversion price: | $1.66
|
| Conversion rate: | 601.5038
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| Call options: | Non-callable until May 20, 2025 and then subject to a 130% hurdle
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| Put options: | Upon a fundamental change
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| Pricing date: | May 10
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| Settlement date: | May 13
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| Distribution: | Rule 144A
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| Talk: | Revised talk for coupon of 6% and initial conversion premium of 25%; initial talk for a coupon of 5% to 5.5% and premium of 30% to 35%
|
| Stock symbol: | NYSE: DM
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| Stock price: | $1.33 at market close May 10
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| Market capitalization: | $1.07 billion
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