BlackLine talks $435 million five-year convertibles to yield 0%-0.5%, up 32.5%-37.5%

By Abigail W. Adams

Portland, Me., Aug. 7 – BlackLine Inc. plans to price $435 million of five-year convertible notes after the market close on Thursday with price talk for a coupon of 0% to 0.5% and an initial conversion premium of 32.5% to 37.5%, according to a market source.

J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are bookrunners for the Rule 144A offering, which carries a greenshoe of $65 million.

The notes are non-callable for three years and then subject to a 130% hurdle with a make-whole.

There is standard takeover and dividend protection.

The notes will be settled in cash, shares, or a combination of both at the company’s option.

In connection with the pricing of the notes, BlackLine 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 capital expenditures and potential acquisitions.

BlackLine is a Los Angeles-based cloud-based accounting and finance software company.

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