World Wrestling Entertainment Inc. priced $200 million of convertible senior notes due 2023 in a private placement.
The offering was increased by $25 million from the previously announced offering size of $175 million, the company said Dec. 12. WWE also granted the initial purchasers a 30-day option to purchase up to an additional $30 million of the notes.
The offering is expected to settle on Dec. 16 subject to customary closing conditions, and is expected to result in about $193.4 million in net proceeds to WWE. The company expects to use about $14.6 million of the net proceeds to pay the cost of the convertible note hedge transactions described, and to use the remaining proceeds to support the execution of the WWE's long-term growth strategy and for general corporate purposes.
The notes will be unsecured, senior obligations of WWE and will bear interest at a rate of 3.375% per year. Interest will be payable semiannually in arrears on June 15 and Dec. 15 of each year, beginning June 15, 2017. The notes will mature on Dec. 15, 2023, unless earlier repurchased or converted. Conversions of the notes will be settled in cash, shares of WWE class A common stock or a combination thereof.
The initial conversion rate for the notes is 40.1405 shares of WWE Class A common stock per $1,000 principal amount of notes.
WWE entered into convertible note hedge transactions with affiliates of three of the initial purchasers, and also entered into warrant transactions with the option counterparties. The strike price of the warrants will initially be about $31.89 per share.