By Rebecca Melvin
New York, Dec. 12 - Trulia Inc. priced an upsized $200 million of seven-year convertible senior notes at par after the market close Tuesday to yield 2.75% with an initial conversion premium of 30%, according to a news release.
The Rule 144A offering was initially talked at $150 million in size. There is also a $30 million greenshoe, which was upsized from $22.5 million.
Pricing came at the cheap end of talk, which was for a 2.25% to 2.75% coupon, and a with an initial conversion premium of 30% to 35% premium.
J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and RBC Capital Markets LLC were joint bookrunners of the deal.
The notes are non-callable until Dec. 20, 2018 and then are provisionally callable if shares rise to at least 130% of the conversion price. There are no puts except a change-of-control put.
Up to $30 million of the proceeds will be used to repurchase shares of common stock from initial purchasers of the notes currently with the offering, and about $7.2 million will be used to repay amounts outstanding under the company's credit facility, which will be terminated.
Remaining proceeds will be used for working capital and other general corporate purposes, including potential acquisitions.
San Francisco-based Trulia is a real estate website that provides tools to research homes and neighborhoods.
| Issuer: | Trulia Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $200 million, upsized from $150 million
|
| Greensoe: | $30 million, upsized from $22.5 million
|
| Maturity: | Dec. 15, 2020
|
| Bookrunners: | J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., RBC Capital Markets LLC
|
| Co-managers: | Craig-Hallum, Needham, Cantor Fitzgerald & Co., Raymond James & Associates Inc., William Blair
|
| Coupon: | 2.75%
|
| Price: | Par
|
| Yield: | 2.75%
|
| Conversion premium: | 30%
|
| Conversion price: | $35.93
|
| Conversion ratio: | 27.8303 shares
|
| Calls: | Non-callable until Dec. 20, 2018, then provisionally callable at 130% price hurdle
|
| Puts: | No puts
|
| Takeover protection: | Yes
|
| Price talk: | 2.25%-2.75%, up 30%, 35%
|
| Pricing date: | Dec. 11
|
| Settlement date: | Dec. 17
|
| Stock symbol: | Nasdaq: TRLA
|
| Stock reference price: | $27.64 at close Dec. 11
|
| Distribution: | Rule 144A
|
| Market capitalization: | $1.02 billion
|
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