Boston, MA 08/15/2014 (wallstreetpr) – According to recent reports, Priceline Group Inc (NASDAQ:PCLN) has decided to offer private offerings to eligible institutional investors. The company will offer convertible senior notes that will carry principal amount of $1 billion, due by 2021. The only condition that institutional investors will have to fulfill for that is but to pursue Rule 144A under the Securities Act of 1933.
Details Of Convertible Notes:
The details made public by the company claim that all the convertible notes will carry interest rate of 0.90% per annum, payable semiannually. In certain conditions, the notes holders will be able to cash in the notes up to their principal amount. They will also be able to convert them in the common stocks of Priceline Group Inc (NASDAQ:PCLN). Other than this feature, the notes will also be eligible for the conversion value above the principal amount. The conversion rate offered by the company is 0.4865 shares of common stock per $1,000. Here the latter value represents the principal amount of the stocks. If you total the conversion amount, then it comes up to around 2,055.50 per share. If one chooses to convert his common stocks, then he gets up to 60% conversion premium on the basis of latest closing price of $1,284.81 per share.
According to the management of the company, the net proceeds from convertible notes will sum up to around $990 million after deducting all the fees and other expenses. If the initial purchasers sell to the extent of $1 billion, then Priceline Group Inc (NASDAQ:PCLN) may think over granting an option to buy up to $150 million principal amount of extra notes to other purchasers at any time before September 13, 2014. The transaction will be done on over-allotment basis. The company wants to use the net proceedings from this offering to buy $147 million worth of outstanding common stocks in off-market transactions.