Nashville, May 26 - Digital River Inc. sold $175 million of 20-year convertible notes at par to yield 1.25% with a 33% initial conversion premium.
Credit Suisse First Boston was the bookrunner.
The Rule 144A deal priced at the cheap end of price talk for a 0.75% to 1.25% coupon and 33% to 38% initial conversion premium.
Holders will have full dividend protection.
Eden Prairie, Minn.-based Digital River, which provides electronic commerce outsourcing services, said a portion of proceeds will be used to repay its senior secured revolving credit facility and the balance for general corporate purposes, including working capital, capital expenditures, acquisitions and the repurchase of stock.
| Issuer: | Digital River Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | Credit Suisse First Boston
|
| Amount: | $175 million
|
| Greenshoe: | $20 million
|
| Maturity: | June 1, 2024
|
| Coupon: | 1.25%
|
| Price: | Par
|
| Yield: | 1.25%
|
| Conversion premium: | 33%
|
| Conversion price: | $44.063
|
| Conversion ratio: | 22.6948
|
| Contingent conversion: | 130%
|
| Call: | Non-callable for 3 years, then in years 3-5 with 150% trigger
|
| Put: | In years 5, 10 and 15
|
| Price talk: | 0.75-1.25%, up 33-38%
|
| Pricing date: | May 26, after the close
|
| Settlement date: | June 1
|
| Distribution: | Rule 144A
|
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