Fiverr raising $400m in 0% convertible notes issue

Micha Kaufman / Photo: Omer Hacohen, PR, PR

The conversion price is $213.57, representing a premium of 40% over Fiverr's current share price.

Fiverr International Ltd. (NYSE: FVRR) has announced the pricing of its convertible notes issue. The company plans to raise $400 million in an offering of convertible senior notes at zero interest to qualified institutional buyers. The notes are redeemable in November 2025. The conversion price is $213.57, representing a premium of 40% over Fiverr's current share price. The amount raised could rise by a further $60 million if participants in the offering choose to exercise options to buy further notes.

Fiverr, which provides an Internet platform linking freelancers with customers, announced that in connection with the pricing of the notes, it had entered into privately negotiated capped call transactions with certain of the initial purchasers of the notes or their affiliates and other financial institutions designed to reduce the potential dilution to the holders of ordinary shares of Fiverr on the conversion of notes by in effect raising the conversion price to $305.1, twice the company's current share price.

The net amount raised will be $389 million, or $447 million if the options on further notes are exercised. $37.6 million of the amount raised will finance the capped call transactions. The rest will be used by the company for general business needs and working capital.

This is Fiverr's second capital raising exercise within six months. In May, the company raised $120 million in an equity offering at $60 per share, since when its share price has risen by 154%. At the end of the second quarter, Fiverr had $290 million cash.

Three other Israeli companies have recently raised debt at 0% interest in convertible bond offerings: Wix, Nice Systems, and SolarEdge.

Published by Globes, Israel business news - en.globes.co.il - on October 8, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Micha Kaufman / Photo: Omer Hacohen, PR, PR
Micha Kaufman / Photo: Omer Hacohen, PR, PR
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