By Abigail W. Adams
Portland, Me., June 27 – Momo Inc. priced $650 million of seven-year convertible notes prior to the market open on Wednesday at the mid-point of talk with a coupon of 1.25% and an initial conversion premium of 42.5%, according to a company news release.
Price talk had been for a coupon of 1% to 1.5% and an initial conversion premium of 40% to 45%, according to a market source.
J.P. Morgan Securities LLC is lead left bookrunner for the Rule 144A and Regulation S deal, which carries a greenshoe of $100 million.
Credit Suisse Securities LLC and Morgan Stanley & Co. Inc. are also bookrunners.
The notes are non-callable. There is a put option on July 1, 2023 or in the event of a fundamental change.
Proceeds will be used to repay the $300 million bank loan facility entered into to finance the acquisition of Tantan Ltd., pay the remaining amount for the acquisition and invest in Tantan’s business development and other business development initiatives in Momo’s platform.
Momo is a Beijing-based mobile social networking platform in China.
| Issuer: | Momo Inc.
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| Securities: | Convertible senior notes
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| Amount: | $650 million
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| Greenshoe: | $100 million
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| Maturity: | July 1, 2025
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| Bookrunners: | J.P. Morgan Securities LLC (lead left), Credit Suisse Securities LLC and Morgan Stanley & Co. Inc.
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| Coupon: | 1.25%
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| Price: | Par
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| Conversion premium: | 42.5%
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| Conversion price: | $64.61
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| Conversion rate: | 15.4776
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| Call options: | Non-callable
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| Put options: | July 1, 2023 or upon a fundamental change
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| Pricing date: | June 27
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| Settlement date: | July 2
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| Talk: | Coupon of 1% to 1.5% and an initial conversion premium of 40% to 45%
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| Stock symbol: | Nasdaq: MOMO
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| Stock price: | $45.34
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| Market capitalization: | $8.65 billion
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