Vertex talks $250 million five-year convertibles to yield 0.75%-1.25%, up 27.5%-32.5%

By Abigail W. Adams

Portland, Me., April 22 – Vertex Inc. plans to price $250 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 27.5% to 32.5%, according to a market source.

Morgan Stanley & Co. LLC is bookrunner for the Rule 144A offering, which carries a greenshoe of $37.5 million.

The notes are non-callable until May 5, 2027 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 offering, the company will enter into capped call transactions.

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

Vertex is a King of Prussia, Pa.-based indirect tax solutions company.

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