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Envestnet prices convertible notes offering

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Envestnet prices convertible notes offering

Envestnet Inc. has priced an offering of $300 million of 1.75% convertible notes due 2023 in a private offering.

The company also granted to the initial purchasers of the notes a 30-day option to purchase up to an additional $45 million of the notes.

Subject to closing conditions, the sale is expected to close May 25.

The notes will be general unsecured obligations, subordinated in right of payment to the company's obligations under its revolving credit facility. The notes will mature June 1, 2023, unless earlier purchased, redeemed or converted. Interest on the notes will accrue at an annual rate of 1.75%, and will be payable semiannually in arrears on June 1 and Dec. 1 of each year, starting Dec. 1.

The notes will be convertible prior to the close of business on the business day immediately preceding Dec. 15, 2022, only under certain circumstances and during certain periods. Thereafter, they will be convertible at any time until the close of business on the second scheduled trading day immediately preceding the maturity date.

The initial conversion rate for the notes will be 14.6381 shares of Envestnet's common stock for each $1,000 principal amount of the notes, equivalent to an initial conversion price of approximately $68.31 per share. Upon conversion, the notes may be settled in cash, Envestnet's common shares, or a combination of cash and shares.

The company may redeem the notes for cash on or after June 5, 2021.

Envestnet estimates net proceeds from the sale of the notes, after deducting initial purchaser discounts and offering expenses, of approximately $291.3 million, or approximately $335.1 million if the initial purchasers exercise in full their option to purchase additional notes.

The company expects to use a portion of the net proceeds to repay the outstanding principal balance of its revolving credit facility. The remaining net proceeds, together with the increased amounts available under the revolving credit facility, may be used for general corporate purposes, which may include selective strategic investments through acquisitions, alliances or other transactions and to repurchase or retire the company's outstanding 1.75% convertible notes due 2019.