By Abigail W. Adams
Portland, Me., May 14 – Alteryx, Inc. priced $200 million of five-year convertible notes after the market close on Tuesday with a discounted issue price of 98, a coupon of 0.5% and an initial conversion premium of 42.5%.
The deal came at the cheap end of price talk for a coupon of 0% to 0.5% and an initial conversion premium of 42.5% to 47.5%, according to a market source.
Price talk was revised during the bookbuilding process to include the discounted issue price, according to a market source.
J.P. Morgan Securities LLC and Goldman Sachs & Co. are joint bookrunners for the Rule 144A deal, which carries a greenshoe of $30 million.
The notes are contingently convertible until March 1, 2023, according to a company news release. They will mature on June 1, 2023.
The notes are non-callable. There is standard dividend and takeover protection.
Conversions will be settled in cash, shares or a combination of both at the company’s option.
In connection with the offering, Alteryx will enter into capped call transactions. The cap price will be $66.22, representing a premium of 100% over the last reported sales price of the stock.
Net proceeds are expected to be $194.8 million, or $224.2 million if the greenshoe is exercised in full.
Approximately $16.6 million of the proceeds will be used to cover the cost of the call spread. The remaining amount will be used for general corporate purposes which may include acquisitions or strategic transactions.
Alteryx is an Irvine, Calif.-based computer software company.
| Issuer: | Alteryx, Inc.
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| Securities: | Convertible senior notes
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| Amount: | $200 million
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| Greenshoe: | $30 million
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| Maturity: | June 1, 2023
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| Bookrunners: | J.P. Morgan Securities LLC and Goldman Sachs & Co.
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| Coupon: | 0.5%
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| Price: | 98
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| Par | 100
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| Conversion premium: | 42.5%
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| Conversion price: | $44.33
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| Conversion rate: | 22.5572
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| Call options: | Non-callable
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| Put options: | Upon a fundamental change
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| Pricing date: | May 15
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| Settlement date: | May 18
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| Talk: | Coupon of 0% to 0.5% and an initial conversion premium of 42.5% to 47.5%
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| Stock symbol: | NYSE: AYX
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| Stock price: | $31.11 at market close May 15
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| Market capitalization: | $2.17 billion
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