Upwork greenshoe increases 0.25% five-year convertibles to $575 million

By Wendy Van Sickle

Columbus, Ohio, Aug. 10 – Underwriters for Upwork Inc.’s 0.25% five-year convertible notes exercised their full $75 million greenshoe, lifting the total deal size to $575 million, according to a press release Tuesday.

The company priced $500 million of the convertibles after the market close on Thursday with an initial conversion premium of 42.5%, as previously reported.

The notes came in the middle of coupon talk of 0% to 0.5%. The initial conversion premium was expected to be between 37.5% and 42.5%, based on details provided by a market source.

Goldman Sachs & Co. LLC (lead left), BofA Securities Inc. and Jefferies LLC are underwriters for the Rule 144A offering.

The notes are non-callable until Aug. 20, 2024 and then subject to a 130% hurdle.

They are putable upon a fundamental change.

In connection with the offering, the company will enter into capped call transactions.

The price of the capped call transactions is initially approximately $92.74 per share, a premium of 100% of the last reported sale price of common stock of $46.37 on Aug. 5.

Proceeds will be used to cover the cost of the call spread and for general corporate purposes.

Upwork is a San Francisco-based freelancing platform.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.