MongoDB talks $200 million six-year convertible notes to yield 0.5% to 1%, up 27.5% to 32.5%

By Abigail W. Adams

Portland, Me., June 25 – MongoDB, Inc. plans to price $200 million of six-year convertible notes with price talk for a coupon of 0.5% to 1% and an initial conversion premium of 27.5% to 32.5%, according to a market source.

Morgan Stanley & Co. Inc. is the lead bookrunner for the Rule 144A deal, which carries a greenshoe of $30 million.

The notes are non-callable for three-years and may then be redeemed subject to a 130% hurdle with a make-whole. They will be settled in cash, shares or a combination of both at the company’s option.

In connection with the pricing, MongoDB will enter into capped call transactions.

Proceeds will be used to cover the cost of the call spread and for general corporate purposes.

MongoDB is a New York-based developer of a general-purpose open-source database platform.

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