MongoDB upsizes six-year convertible notes offering to $1 billion, revises price talk

By Abigail W. Adams

Portland, Me., Jan. 9 – MongoDB Inc. upsized its planned offering of six-year convertible notes to $1 billion from $750 million and revised price talk to a coupon of 0.25% and an initial conversion premium of 40% to 42.5%, according to a market source.

Initial price talk was for a coupon of 0% to 0.5% and an initial conversion premium of 37.5% to 42.5%.

Morgan Stanley & Co. LLC (lead left), Goldman Sachs & Co. LLC and Barclays are the bookrunners on the Rule 144A offering, which carries an upsized greenshoe of $150 million.

The initial size of the greenshoe was $112.5 million.

The notes are non-callable for three years and then subject to a 130% hurdle. There are no puts.

In connection with the pricing of the notes, MongoDB will enter into capped call transactions.

Proceeds will be used to cover the cost of the call spread and repurchase up to $240 million of the company’s outstanding 0.75% convertible notes due 2024 in privately negotiated transactions.

Remaining proceeds will be used for working capital and general corporate purposes, which may include acquisitions or investments.

MongoDB is a New York-based document-oriented database program.

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