Luminar talks $500 million five-year convertible notes to yield 0.75%-1.25%, up 32.5%-37.5%

By Abigail W. Adams

Portland, Me., Dec. 14 – Luminar Technologies Inc. plans to price $500 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 32.5% to 37.5%, according to a market source.

Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Citigroup Global Markets Inc. and Jefferies LLC are bookrunners for the Rule 144A offering, which carries a greenshoe of $75 million.

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

There is takeover and dividend protection.

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

Proceeds will be used to cover the cost of the call spread, to repurchase up to $250 million in class A common stock and for general corporate purposes.

Luminar Technologies is an Orlando, Fla-based autonomous vehicle software company.

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