Weibo talks $300 million seven-year convertible notes to yield 1.125% to 1.625%, up 32.5% to 37.5%

By Abigail W. Adams

Portland, Me., Nov. 29 – Weibo Corp. plans to price $300 million of seven-year convertible notes prior to the market open on Thursday with price talk for a coupon of 1.125% to 1.625% and an initial conversion premium of 32.5% to 37.5%, according to a market source.

Goldman Sachs & Co. LLC is sole bookrunner for the Rule 144A deal, which carries a greenshoe of $30 million.

The notes are subject to a clean-up call if less than 10% of the principal amount is outstanding or are callable upon a tax event.

They are putable on Dec. 6, 2027.

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

The company will enter into an ADS lending agreement of up to $75 million to facilitate hedging activity with the ADS borrowed from the company to be offered in SEC-registered offerings.

Proceeds will be used to refinance a portion of the company’s 3.5% senior notes due 2024.

Weibo is a Beijing-based social media platform.

© 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.