Square tightens talk on $1 billion two-tranche offering of long five- and seven-year convertibles

By Abigail W. Adams

Portland, Me., Nov. 9 – Square Inc. tightened talk on its $1 billion two-tranche offering of long five-year convertible notes and seven-year convertible notes, which are slated to price after the market close on Monday.

Price talk for the convertible notes due May 1, 2026 tightened to a fixed coupon of 0% and an initial conversion premium of 60% to 65%, according to a market source.

Initial talk was for a coupon of 0% to 0.25% and an initial conversion premium of 55% to 60%.

Price talk for the seven-year convertible notes tightened to a fixed coupon of 0.25% and an initial conversion premium of 60% to 65%.

Initial talk was for a coupon of 0.25% to 0.75% and an initial conversion premium of 55% to 60%.

Each tranche carries a greenshoe of $75 million.

Goldman Sachs & Co. LLC is the bookrunner for the Rule 144A offering.

In connection with the pricing of the notes, 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.

Square is a San Francisco-based financial technology company.

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