Chicago, Nov. 11 – 3D Systems Corp. sold an upsized offer for $400 million of 0% five-year convertibles with a 42.5% initial conversion premium on Thursday after the market close, according to a press release.
Pricing came on top of tightened talk on Wednesday for a 0% coupon and in the middle of the revised 40% to 45% talk.
Initial talk was for a coupon of 0% to 0.5% and an initial conversion premium of 35% to 40%, according to a market source. The deal was also expected to be sized at $350 million.
Goldman Sachs & Co. LLC and HSBC Securities (USA) Inc. are bookrunners for the Rule 144A offering, which carries an increased greenshoe of $60 million, up from $52.5 million.
The notes are non-callable until Nov. 20, 2024 and then subject to a 130% hurdle.
They are putable upon a fundamental change.
The notes will be settled in cash up to their principal amount with any remaining amount to be settled in cash, shares or a combination of both at the company’s option.
Proceeds will be used for general corporate purposes, which may include potential acquisitions, investments or strategic transactions.
3D Systems is a Rock Hill, S.C.-based 3D printer and scanner manufacturer.
| Issuer: | 3D Systems Corp.
|
| Securities: | Convertible notes
|
| Amount: | $400 million
|
| Greenshoe: | $60 million
|
| Maturity: | Nov. 15, 2026
|
| Bookrunners: | Goldman Sachs & Co. LLC and HSBC Securities (USA) Inc.
|
| Coupon: | 0%
|
| Price: | Par
|
| Yield: | 0%
|
| Conversion premium: | 42.5%
|
| Conversion price: | $35.92
|
| Conversion rate: | 27.8364
|
| Call options: | Non-callable until Nov. 20, 2024, then subject to 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | Nov. 11
|
| Settlement date: | Nov. 16
|
| Distribution: | Rule 144A
|
| Stock reference price: | $25.21 on Nov. 11
|
| Stock symbol: | NYSE: DDD
|
| Market capitalization: | $3.22 billion
|
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