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Price talk on Zillow’s $400 million five-year senior convertible notes revised to 2%-2.25%, up 40%
By Stephanie N. Rotondo
Seattle, Dec. 6 – Zillow Group Inc.’s planned $400 million sale of convertible senior notes due 2021 had its price talk revised to a yield of 2% to 2.25% and an initial conversion premium of 40%, according to a market source.
Initial price talk was 2.25% to 2.75%, with a conversion premium of 35% to 40%.
The deal – led by Citigroup Global Markets Inc. – was first announced on Monday. Pricing was expected after the bell on Tuesday.
There is a $60 million over-allotment option on the Rule 144A deal.
Conversion of the bonds will be settled in cash, class C stock, or a combination thereof.
Proceeds will be used, in part, to pay the cost of capped call transactions associated with the offering. Remaining funds will be used for general corporate purposes, which may include the repurchase of 2.75% convertible senior notes due 2020 linked to subsidiary Trulia LLC, for general and administrative matters, for capital expenditures, for acquisitions or for investments in technologies or businesses that complement Zillow’s business.
Zillow is a Seattle-based real estate company.
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