By Abigail W. Adams
Portland, Me., June 26 – MongoDB, Inc. priced an upsized $250 million of six-year convertible notes prior to the market open on Tuesday with a coupon of 0.75% and an initial conversion premium of 27.5%, according to a company news release.
Pricing came at the midpoint of talk for a coupon of 0.5% to 1% and at the cheap end of talk for 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 an upsized greenshoe of $50 million. Goldman Sachs & Co. and Barclays Capital Inc. are also bookrunners.
The initial size of the deal had been $200 million with a greenshoe of $30 million.
The notes are non-callable until June 20, 2021 and then may be redeemed subject to a 130% hurdle with a make-whole. Conversions 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 with a cap of $106.90, which represents a 100% premium over the last reported sales price of common stock, according to the news release.
Net proceeds are expected to be $241.8 million. 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.
| Issuer: | MongoDB Inc.
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| Securities: | Convertible senior notes
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| Amount: | $250 million
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| Greenshoe: | $50 million
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| Maturity: | June 15, 2024
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| Bookrunners: | Morgan Stanley & Co. Inc., Goldman Sachs & Co., Barclays Capital Inc.
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| Coupon: | 0.75%
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| Price: | Par
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| Conversion premium: | 27.5%
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| Conversion price: | $68.15
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| Conversion rate: | 14.6738
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| Call options: | Non-callable until June 20, 2021 then subject to a 130% hurdle
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| Pricing date: | June 26
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| Settlement date: | June 28
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| Talk: | Coupon of 0.5% to 1% and an initial conversion premium of 27.5% to 32.5%
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| Stock symbol: | Nasdaq: MDB
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| Stock price: | $53.45 at market close June 25
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| Market capitalization: | $2.64 billion
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