By Abigail W. Adams
Portland, Me., Feb. 10 – WisdomTree Inc. priced $130 million of long five-year convertible notes after the market close on Thursday at par with a coupon of 5.75% and an initial conversion premium of 60%, according to a company news release.
Pricing came toward the rich end of talk for a coupon of 5.625% to 6% and in line with talk for a fixed initial conversion premium of 60%, according to a market source.
Oppenheimer & Co. Inc. was the bookrunner for the Rule 144A offering, which carries a greenshoe of $20 million.
The notes are non-callable until Aug. 20, 2025 and then are subject to a 130% hurdle.
They are putable upon a fundamental change.
The notes will be settled in cash up to the principal amount with any remaining amount to be settled in cash, shares or a combination of both at the company’s option.
The company entered into privately negotiated transactions to repurchase $115 million in principal of its 4.25% convertible notes due June 15, 2023 for $125.1 million.
Net proceeds are expected to be $126.4 million or will be $145.9 million if the greenshoe is exercised in full.
Proceeds will be used to fund the repurchase of the 4.25% notes and for general corporate purposes.
WisdomTree is a New York-based global financial company offering a range of exchange-traded products.
| Issuer: | WisdomTree Inc.
|
| Amount: | $130 million
|
| Greenshoe: | $20 million
|
| Issue: | Convertible senior notes
|
| Maturity: | Aug. 15, 2028
|
| Bookrunner: | Oppenheimer & Co.
|
| Coupon: | 5.75%
|
| Price: | Par
|
| Yield: | 5.75%
|
| Conversion premium: | 60%
|
| Conversion price: | $9.54
|
| Conversion rate: | 104.8658
|
| Call options: | Non-callable until Aug. 20, 2025 and then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | Feb. 9
|
| Settlement date: | Feb. 14
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 5.625% to 6% and fixed initial conversion premium of 60%
|
| Stock symbol: | NYSE: WT
|
| Stock price: | $5.96 at market close Feb. 9
|
| Market capitalization: | $873.24 million
|
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