By Abigail W. Adams
Portland, Me., Aug. 22 – PureCycle Technologies Inc. priced an upsized $215 million of 7.25% seven-year green convertible notes after the market close on Monday with a discounted offer price of 90 and an initial conversion premium of 50%, according to a company news release.
Pricing came in line with talk for a discounted offer price of 90, richer than talk for a fixed coupon of 7.5% and in line with talk for a fixed initial conversion premium of 50%, according to a market source.
Oppenheimer & Co. Inc. was bookrunner for the Rule 144A offering, which carries an upsized greenshoe of $35 million.
The initial size of the offering is $200 million with a greenshoe of $30 million.
The notes will be accretive for the first four years and reach par on Aug. 15, 2027.
The notes are non-callable until Aug. 20, 2025 and then subject to a 130% hurdle.
The notes are putable at par on Aug. 15, 2027 or upon a fundamental change.
The convertibles will be settled in cash, shares or a combination of both at the company’s option.
Entities affiliated with Sylebra Capital Management will purchase $50 million of the notes upon maturity with the company’s fiscal adviser to purchase $5 million.
Net proceeds are expected to be $188.8 million or will be $219.25 million if the greenshoe is exercised in full.
Proceeds will be used to finance or refinance eligible green projects, including funding needed for the construction of a multi-line purification facility in Augusta, Ga, and for general corporate purposes.
PureCycle is an Orlando, Fla.-based company specializing in a purification recycling technology that transforms No. 5 plastics into renewable energy.
| Issuer: | PureCycle Technologies Inc.
|
| Amount: | $215 million
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| Greenshoe: | $35 million
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| Issue: | Green convertible senior notes
|
| Maturity: | Aug. 15, 2030
|
| Bookrunner: | Oppenheimer & Co. Inc.
|
| Coupon: | 7.25%
|
| Price: | 90
|
| Yield: | Accretive until Aug. 15, 2027 when they reach par
|
| Conversion premium: | 50%
|
| Conversion price: | $14.82
|
| Conversion rate: | 67.4764
|
| Call options: | Non-callable until Aug. 20, 2025 and then subject to a 130% hurdle
|
| Put options: | Putable at par on Aug. 15, 2027 or upon a fundamental change
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| Pricing date: | Aug. 21
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| Settlement date: | Aug. 24
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| Distribution: | Rule 144A
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| Talk: | Discounted offer price of 90, a coupon of 7.5% and initial conversion premium of 50%
|
| Stock symbol: | Nasdaq: PCT
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| Stock price: | $9.88 at market close Aug. 21
|
| Market capitalization: | $1.62 billion
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