Benzinga | Aug 11, 2021 09:42AM EDT

Avalara Raises $850M Via Institutional Offering Of Senior Convertible Notes

* Avalara Inc (NYSE:AVLR) priced $850 million 0.25% senior convertible notes due 2026 in a private institutional placement.

* The initial purchasers have a 13-day option to purchase additional notes up to $127.5 million.

* The notes will bear interest at a fixed rate of 0.25% per year, payable semi-annually in arrears on Feb. 1 and Aug. 1 of each year, beginning on Feb. 1, 2022. The notes have an initial conversion price of $238.44 per share.

* Avalara may redeem for cash all or any portion of the notes, at its option, on or after Aug. 6, 2024, if the last reported closing price is at least 130% of the conversion price.

* In connection with the pricing of the notes, Avalara forged privately negotiated capped call transactions with certain of the initial purchasers or their respective affiliates and certain other financial institutions.

* The cap price of the capped call transactions will initially be $323.30 per share, which represents a premium of 100.0% over Avalara's Aug. 10 closing price.

* Avalara will utilize $65.5 million of the offering proceeds to pay the cost of the capped call transactions. It will use the remaining proceeds for general corporate purposes.

* Price Action: AVLR shares are trading lower by 0.30% at $161.16 on the last check Wednesday.