Atlassian talks $750 million five-year convertibles to yield 0.125% to 0.625%, up 42.5% to 47.5%

By Abigail W. Adams

Portland, Me., April 24 – Atlassian Corp. plc plans to price $750 million of five-year convertible notes after the market close on Tuesday with talk for a coupon of 0.125% to 0.625% and an initial conversion premium of 42.5% to 47.5%, according to a market source.

Morgan Stanley & Co. Inc. and Goldman Sachs & Co. are joint bookrunners for the Rule 144A deal, which carries a greenshoe of $112.5 million.

The notes are non-callable for 2.5 years and may then be redeemed subject to a 130% hurdle with a make-whole. There are no put options.

The notes carry dividend and take over protection. They will be settled in cash only.

In connection with the pricing, Atlassian will enter into capped call transactions with the cap price expected to be 100% over the last reported sales price of common stock at closing, according to a company news release.

Proceeds will be used to cover the cost of the call spread, for working capital and for general corporate purposes.

Atlassian is a San Francisco-based developer of collaborative software.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.