MongoDB talks $750 million six-year convertibles to yield 0%-0.5%, up 37.5%-42.5%

By Abigail W. Adams

Portland, Me., Jan. 9 – MongoDB Inc. plans to price $750 million of six-year convertible notes after the market close on Thursday with price talk for a coupon of 0% to 0.5% and an initial conversion premium of 37.5% to 42.5%, according to a market source.

Morgan Stanley & Co. LLC (lead left), Goldman Sachs & Co. LLC and Barclays are the bookrunners on the Rule 144A offering, which carries a greenshoe of $112.5 million.

The notes are non-callable for three years and then subject to a 130% hurdle. There are no puts.

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

Proceeds will be used to cover the cost of the call spread and repurchase up to $240 million of the company’s outstanding 0.75% convertible notes due 2024 in privately negotiated transactions.

Remaining proceeds will be used for working capital and general corporate purposes, which may include acquisitions or investments.

MongoDB is a New York-based document-oriented database program.

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