By Rebecca Melvin
New York, Oct. 17 – Monster Worldwide Inc. priced $125 million of five-year convertible senior notes at par after the market close Thursday to yield 3.5% with an initial conversion price of 32.5%, according to a news release.
Pricing of the Rule 144A deal came at the cheap end of 3% to 3.5% coupon talk and beyond the cheap end of 37.5% to 42.5% premium talk.
There is a greenshoe for $18.75 million for the deal that was placed via bookrunner BofA Merrill Lynch.
The notes are non-callable and have takeover protection.
In connection with the offering, Monster entered into a capped call transaction with an affiliate of one of the initial purchasers of the notes. The cap price under the call will initially be $7.035 per share, which represents a premium of about 75% from the issuer’s perspective.
Proceeds will be used to pay for the cost of the capped call transaction, to repay in full a term loan under an existing credit facility and to repay a portion of the revolving debt under an existing credit facility.
New York-based Monster is an online and mobile employment services company.
| Issuer: | Monster Worldwide Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $125 million
|
| Greenshoe: | $18.75 million
|
| Maturity: | Oct. 15, 2019
|
| Bookrunner: | BofA Merrill Lynch
|
| Coupon: | 3.5%
|
| Price: | Par
|
| Yield: | 3.5%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $5.33 per share
|
| Conversion ratio: | 187.7405 shares
|
| Takeover protection: | Yes
|
| Calls: | Non-callable
|
| Capped call: | Yes, cap price will initially be $7.035 per share, boosting the premium to 75% from the issuer’s perspective
|
| Pricing date: | Oct. 16
|
| Settlement date: | Oct. 22
|
| Stock symbol: | NYSE: MWW
|
| Stock price: | $4.02 at close Oct. 16
|
| Market capitalization: | $346.41 million
|
| Distribution: | Rule 144A
|
| Price talk: | 3%-3.5%, up 37.5%-42.5%
|
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