By Rebecca Melvin
New York, May 18 - Callidus Software Inc. priced $70 million of five-year senior convertible notes Tuesday after the market close at par to yield 4.75% with an initial conversion premium of 25%, according to a news release.
The Rule 144A offering, which has a $10.5 million greenshoe, came at the midpoint of talk, which was for a coupon of 4.5% to 5% and an initial conversion premium of 22.5% to 27.5%.
Morgan Stanley & Co. Inc. was the bookrunner with Roth Capital Partners as a co-manager.
The notes are non-callable for three years and then are provisionally callable subject to a price hurdle of 130%.
About $15 million of the proceeds are earmarked to repurchase shares of common stock from purchasers of the notes. Remaining proceeds are for general corporate purposes, which may include the acquisition of complementary businesses, products or technologies.
Pleasanton, Calif.-based Callidus is a sales software company.
| Issuer: | Callidus Software Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $70 million
|
| Greenshoe: | $10.5 million
|
| Maturity: | June 1, 2016
|
| Bookrunner: | Morgan Stanley & Co. Inc.
|
| Co-manager: | Roth Capital Partners
|
| Coupon: | 4.75%
|
| Price: | Par
|
| Yield: | 4.75%
|
| Conversion premium: | 25%
|
| Conversion price: | $7.71
|
| Conversion ratio: | 129.6596 shares
|
| Call option: | Non-callable until 2014, then provisionally callable subject to a 130% price hurdle
|
| Puts: | No puts
|
| Price talk: | 4.5%-5%, up 22.5%-27.5%
|
| Pricing date: | May 17
|
| Settlement date: | May 23
|
| Distribution: | Rule 144A
|
| Stock symbol: | Nasdaq: CALD
|
| Stock reference price: | $6.17 at close May 17
|
| Market capitalization: | $204.3 million
|
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