By Abigail W. Adams
Portland, Me., June 10 – WisdomTree Investments Inc. priced $150 million of three-year convertible notes prior to the market open on Wednesday at par with a coupon of 4.25% and an initial conversion premium of 60%, according to a company news release.
Pricing came at the cheap end of talk for a coupon of 3.75% to 4.25% and in line with talk for an initial conversion premium of 60%, according to a market source.
Oppenheimer & Co. Inc. was bookrunner for the Rule 144A offering, which carries a greenshoe of $22.5 million.
The notes are contingently convertible until March 15, 2023.
They are non-callable until June 20, 2021 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 excess amount to be settled in cash, shares or a combination of both at the company’s option.
Net proceeds are expected to be $145.5 million or will be $167.3 million if the greenshoe is exercised in full.
Approximately $23.9 million of net proceeds will be used to repurchase common stock from purchasers of the notes in privately negotiated transactions at a purchase price of $3.70.
Approximately $121.6 million of the proceeds together with cash on hand will be used to repay outstanding amounts under the company’s senior secured term loan.
WisdomTree is a New York-based ETF and ETP sponsor and asset manager.
| Issuer: | WisdomTree Investments Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $150 million
|
| Greenshoe: | $22.5 million
|
| Maturity: | June 15, 2023
|
| Bookrunner: | Oppenheimer & Co. Inc.
|
| Coupon: | 4.25%
|
| Price: | Par
|
| Yield: | 4.25%
|
| Conversion premium: | 60%
|
| Conversion price: | $5.92
|
| Conversion rate: | 168.9189
|
| Call options: | Non-callable until June 20, 2021 and then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | June 10
|
| Settlement date: | June 16
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 3.75% to 4.25% and initial conversion premium of 60%
|
| Stock symbol: | Nasdaq: WETF
|
| Stock price: | $3.70 at market close June 10
|
| Market capitalization: | $566.49 million
|
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