Power grid management software company enernoc, which went public in 2007, raised US$160m from five-year convertible bonds with a 2.25% coupon and 40% conversion premium to the stock's Tuesday closing price of US$19.79. The coupon was set at the mid-point of the 2%-2.5% coupon range, though the conversion premium was higher than the 32.5%-37.5% range. The size of the deal was increased from US$130m at launch. Morgan Stanley was sole books on the offering. The company agreed to buy back US$30m of stock on the deal, helping to facilitate delta hedging on the part of convertible arb funds that participated in the deal. The share repurchase, which is part of a recently authorised US$50m programme, also reduced share dilution.
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