By Stephanie N. Rotondo
Seattle, April 7 – GoPro Inc. priced an upsized $175 million offering of convertible senior notes due 2022 at par to yield 3.5% with an initial conversion premium of 25% on Friday, according to a press release.
The Rule 144A deal came in line with price talk and upsized from $150 million.
J.P. Morgan Securities LLC is the bookrunner.
The notes are non-callable for life. Holders can put the bonds upon a fundamental change, the company said in a press release.
The conversion rate will also be increased upon a fundamental change.
The initial conversion rate is 94.0071 shares per each $1,000 of notes. That equates to an initial conversion price of $10.64 per share
Prior to Jan. 15, 2022, holders can convert the paper under certain circumstances. After that date, but prior to maturity, the notes are convertible at any time.
Conversions will be settled with class A common stock, cash, or a combination of the two.
In connection with the convertibles sale, GoPro will ink a privately negotiated prepaid forward stock purchase transaction with an affiliate of an initial purchaser of the new convertible bonds. Under the forward transaction, GoPro will buy $78 million of common stock on April 15, 2022.
The company said the prepaid forward is intended to facilitate investors’ use of privately negotiated derivative transactions to hedge their positions in the notes.
Proceeds will be used to fund the prepaid forward transaction and for general corporate purposes.
GoPro is a San Mateo, Calif.-based technology company that manufactures cameras and develops its own apps and video editing software.
| Issuer: | GoPro Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $175 million, upsized from $150 million
|
| Maturity: | April 15, 2022
|
| Bookrunner: | J.P. Morgan Securities LLC
|
| Coupon: | 3.5%
|
| Price: | Par of $1,000
|
| Yield: | 3.5%
|
| Conversion premium: | 25%
|
| Conversion price: | $10.64
|
| Conversion rate: | 94.0071 shares
|
| Call options: | Non-callable
|
| Contingent conversion: | Yes, prior to Jan. 15, 2022
|
| Net share settlement: | Yes
|
| Pricing date: | April 7
|
| Settlement date: | April 12
|
| Distribution: | Rule 144A
|
| Price talk: | 3.5% yield, up 25%
|
| Stock symbol: | Nasdaq: GPRO
|
| Stock price: | $8.51 as of April 6 close
|
| Market capitalization: | $1.22 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.
