By Abigail W. Adams
Portland, Me., June 11 – Eventbrite Inc. priced an upsized $130 million of long five-year convertible notes after the market close on Wednesday at par at the cheap end of talk with a coupon of 5% and an initial conversion premium of 17.5%, according to a company news release.
Price talk was for a coupon of 4.5% to 5% and an initial conversion premium of 17.5% to 22.5%, according to a market source.
Morgan Stanley & Co. LLC was the bookrunner for the Rule 144A offering, which carries an upsized greenshoe of $20 million.
The initial size of the offering was $115 million with a greenshoe of $17.25 million.
The notes are contingently convertible until June 2, 2025.
They are non-callable until June 1, 2023 and then subject to a 130% hurdle.
They are putable upon a fundamental change.
The notes will be settled in cash, shares or a combination of both at the company’s option.
In connection with the pricing of the notes, the company entered into capped call transactions with a cap price of $17.1520, which represents a 60% premium over the last reported sales price of stock.
Net proceeds are expected to be $125.3 million or will be $144.7 million if the greenshoe is exercised in full.
Approximately $13.5 million of proceeds will be used to cover the cost of the call spread with the remaining amount to be used for general corporate purposes.
Eventbrite is a San Francisco-based self-service ticketing technology platform.
| Issuer: | Eventbrite Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $130 million
|
| Greenshoe: | $20 million
|
| Maturity: | Dec. 1, 2025
|
| Bookrunner: | Morgan Stanley & Co. LLC
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Conversion premium: | 17.5%
|
| Conversion price: | $12.60
|
| Conversion rate: | 79.3903
|
| Call options: | Non-callable until June 1, 2023 and then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | June 10
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 4.5% to 5% and initial conversion premium of 17.5% to 22.5%
|
| Stock symbol: | NYSE: EB
|
| Stock price: | $10.72 at market close June 10
|
| Market capitalization: | $933.98 billion
|
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