SAN JOSE, CA-Locally based Move Inc. revealed pricing of $85 million aggregate principal amount of convertible senior notes due 2018 in a private placement. Move has also granted the initial purchaser an option to purchase up to an additional $15 million aggregate principal amount of the notes.
The notes will pay interest semiannually at a rate of 2.75% per annum. The notes will mature on Sept. 1, 2018, unless repurchased or converted in accordance with their terms prior to such date.
Prior to June 1, 2018, the notes will be convertible at the option of holders only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the business day immediately preceding the maturity date regardless of these conditions.
Upon conversion, holders will receive, at Move's election, cash, shares of Move's common stock or a combination thereof. Holders of the notes will have the right to require Move to repurchase all or some of their notes at 100% of their principal, plus any accrued and unpaid interest, upon the occurrence of certain events.
The initial conversion rate will be 53.2907 shares of Move's common stock (subject to customary adjustments) per $1,000 principal amount of the notes, which is equivalent to a conversion price of approximately $18.77 per share, which represents a conversion premium of approximately 35% to the closing sale price of $13.90 per share of Move's common stock on August 6, 2013.
Move estimates that the net proceeds from the sale of the notes will be approximately $82.1 million, after deducting the initial purchaser's discount and estimated offering expenses payable by Move (assuming no exercise of the initial purchaser's option to purchase additional notes).
Move intends to use $25 million of the net proceeds from this offering to repurchase shares of its common stock concurrently with the offering in privately negotiated transactions, which could affect the market price of Move's common stock concurrently with, or shortly after, the pricing of the notes, and could result in a higher effective conversion price for the notes. Move intends to use the remaining net proceeds for general corporate purposes and possible future acquisitions or strategic transactions.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
