By Abigail W. Adams
Portland, Me., Aug. 18 – Envestnet Inc. priced $450 million of five-year convertible notes after the market close on Monday at par at the rich end of talk with a coupon of 0.75% and an initial conversion premium of 35%, according to a company news release.
Price talk was for a coupon of 0.75% to 1.25% and an initial conversion premium of 30% to 35%, according to a market source.
J.P. Morgan Securities LLC, BMO Capital Markets Corp., BofA Securities Inc. and Goldman Sachs & Co. LLC were joint bookrunners for the Rule 144A offering, which carries a greenshoe of $67.5 million.
The notes are contingently convertible until Feb. 15, 2025.
The notes are non-callable until Aug. 15, 2023 and then subject to a 130% hurdle with a make-whole.
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.
Net proceeds are expected to be $436.8 million or will be $502.5 million if the greenshoe is exercised in full.
Proceeds will be used to repay the outstanding balance under the company’s credit facility with remaining proceeds to be used for general corporate purposes, which may include strategic investments, such as acquisitions.
Envestnet is a Chicago-based financial services company.
| Issuer: | Envestnet Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $450 million
|
| Greenshoe: | $67.5 million
|
| Maturity: | Aug. 15, 2025
|
| Bookrunners: | J.P. Morgan Securities LLC, BMO Capital Markets Corp., BofA Securities Inc. and Goldman Sachs & Co. LLC
|
| Coupon: | 0.75%
|
| Price: | Par
|
| Yield: | 0.75%
|
| Conversion premium: | 35%
|
| Conversion price: | $106.74
|
| Conversion rate: | 9.3682
|
| Call options: | Non-callable until Aug. 15, 2023 and then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | Aug. 17
|
| Settlement date: | Aug. 20
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 0.75% to 1.25% and initial conversion premium of 30% to 35%
|
| Stock symbol: | NYSE: ENV
|
| Stock price: | $79.07 at market close Aug. 17
|
| Market capitalization: | $4.25 billion
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
