MicroStrategy talks $400 million five-year convertible notes at 0.75%-1.25%, up 32.5%-37.5%

By Abigail W. Adams

Portland, Me., Dec. 7 – MicroStrategy Inc. plans to price $400 million of five-year convertible notes after the market close on Tuesday with price talk for a coupon of 0.75% to 1.25% and an initial conversion premium of 32.5% to 37.5%, according to a market source.

Jefferies LLC is bookrunner for the Rule 144A offering, which carries a greenshoe of $60 million.

The notes are contingently convertible until June 15, 2025.

The convertibles are non-callable until Dec. 20, 2023 and are then subject to a 130% hurdle.

Net proceeds will be used to invest in Bitcoin and for general corporate purposes.

MicroStrategy is a Tysons Corner, Va.-based business intelligence and analytics company.

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