Blackboard talks $150 million 20-year convertibles at 3%-3.25%, up 60%-65%, to price Thursday

By Kenneth Lim

Boston, June 13 - Blackboard Inc. plans to price $150 million of 20-year convertible senior notes on Thursday after the market closes, talked at a coupon of 3% to 3.25% and an initial conversion premium of 60% to 65%.

The convertibles are offered at par.

There is an over-allotment option for a further $15 million.

Credit Suisse is the bookrunner of the registered offering.

The notes will have extra embedded warrants at 0.6 to 0.65 times the base underlying shares.

The convertibles will be non-callable for the first four years and may be put in years four, 10 and 15.

There is a contingent conversion trigger at 130% of the conversion price.

The convertibles have dividend and takeover protection.

Blackboard, a Washington-based provider of enterprise learning software applications, said $19.4 million of the proceeds will be used to repay an outstanding senior secured term loan with the remainder earmarked for general purposes.

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