Linkedln CB signals turn in market

摘要

On the surface, linkedin achieved a spectacular outcome on its US$1.15bn, five-year convertible bond issue. The social media powerhouse sourced incredibly low-cost funding and offset share dilution to an incredibly high share price - the deal specifics see the company pay 0.5% annually and economic dilution offset to share prices above US$381.82, or 75% above current levels, through the use of a related derivative. The reality is that investors took the upper hand, driving up the costs for the company. Goldman Sachs, Morgan Stanley and JP Morgan finalised pricing of the CB issue after the market dose on Wednesday at a coupon of 0.5% and conversion premium of 35%, wide of the 0%-0.5% and 40%-45% they had initially sought. The banks revised price talk at midday on Wednesday to 35%-40% at the same coupon talk in an effort to consolidate investor demand.