By Abigail W. Adams
Portland, Me., Feb. 26 – Spotify Technology SA priced $1.3 billion of five-year notes exchangeable for Spotify USA Inc. stock after the market close on Thursday at par with a coupon of 0% and an initial exchange premium of 70%, according to a company news release.
Pricing came in line with talk for a fixed coupon of 0% and at the midpoint of talk for an initial exchange premium of 65% to 75%, according to a market source.
Morgan Stanley & Co. LLC was lead left bookrunner for the Rule 144A offering, which carries a greenshoe of $200 million.
The notes are callable on or after March 20, 2024 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.
Net proceeds are expected to be $1.281 billion or will be $1.479 billion if the greenshoe is exercised in full.
Proceeds will be used for general corporate purposes.
Spotify is a New York-based audio streaming and media services provider.
| Issuer: | Spotify Technology SA
|
| Securities: | Exchangeable notes for Spotify USA Inc. shares
|
| Amount: | $1.3 billion
|
| Greenshoe: | $200 million
|
| Maturity: | March 15, 2026
|
| Bookrunner: | Morgan Stanley & Co. LLC
|
| Coupon: | 0%
|
| Price: | Par
|
| Yield: | 0%
|
| Exchange premium: | 70%
|
| Exchange price: | $515.20
|
| Exchange rate: | 1.9410
|
| Call options: | Non-callable until March 20, 2024 and then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | Feb. 26
|
| Settlement date: | March 2
|
| Distribution: | Rule 144A
|
| Talk: | Fixed coupon of 0% and initial exchange premium of 65% to 75%
|
| Stock symbol: | NYSE: SPOT
|
| Stock price: | $303.06 at market close Feb. 26
|
| Market capitalization: | $57.65 billion
|
|
|
© 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.
