Envestnet greenshoe exercise lifts 1.75% convertibles to $172.5 million

By Jennifer Chiou

New York, Dec. 18 – Envestnet Inc. announced the full exercise of the over-allotment option for its issue of 1.75% convertible senior notes due 2019. The total amount is now $172.5 million.

As reported, the company priced an upsized $150 million of the notes after the market close on Dec. 9 with an initial conversion premium of 32.5%.

According to a news release, the company originally planned $125 million of the convertibles with a greenshoe for $18.75 million in the registered deal.

Pricing came in the middle of yield talk of 1.5% to 2% with an initial conversion premium of 30% to 35%.

The deal was sold via joint bookrunners Stifel, Nicolaus & Co. Inc., Credit Suisse Securities (USA) LLC, and BMO Capital Markets Corp. Co-managers are Sandler O’Neill + Partners, LP, Sterne Agee & Leach Inc. and William Blair & Co. LLC.

The notes are non-callable.

The initial conversion rate for the notes will be 15.9022 shares for each $1,000 principal amount of notes, which is equivalent to an initial conversion price of $62.88 per share. Upon conversion, the notes may be settled in cash, shares or a combination of the two.

Proceeds are earmarked for general corporate purposes, including for selective strategic investments through acquisitions, alliances or other transactions.

Chicago-based Envestnet is a provider of wealth management software and services to independent financial advisers.

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