TripAdvisor talks $300 million five-year convertible notes to yield 0%-0.25%, up 30%-35%

By Abigail W. Adams

Portland, Me., March 22 – TripAdvisor Inc. plans to price $300 million of five-year convertible notes after the market close on Monday with price talk for a coupon of 0% to 0.25% and an initial conversion premium of 30% to 35%, according to a market source.

Morgan Stanley & Co. LLC is an active bookrunner for the Rule 144A offering, which carries a greenshoe of $45 million.

The notes will be settled in cash, shares or a combination of both.

In connection with the offering, the company will enter into capped call transactions.

Proceeds will be used to cover the cost of the call spread and for general corporate purposes, which may include the repayment of debt, including the redemption of its 2025 senior notes.

TripAdvisor is a Needham, Mass.-based travel guidance platform.

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