Mitek Systems talks $125 million five-year convertible notes to yield 0.75% to 1.25%, up 30% to 35%

By Abigail W. Adams

Portland, Me., Feb. 1 – Mitek Systems Inc. plans to price $125 million of five-year convertible notes after the market close on Tuesday with price talk for a coupon of 0.75% to 1.25% and an initial conversion premium of 30% to 35%, according to a market source.

Jefferies LLC and William Blair & Co. LLC are joint bookrunners for the Rule 144A offering, which carries a greenshoe of $18.75 million.

The notes are non-callable.

They will be settled in cash, or cash and shares at the company’s option if it receives shareholder approval to increase the number of authorized shares of common stock, according to a company news release.

In connection with the offering, the company will enter into convertible note hedge and warrant transactions.

Proceeds will be used to cover the cost of the hedge transactions and for general corporate purposes, which may include potential acquisitions and strategic transactions.

Mitek is a San Diego-based identity verifications solutions company.

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