Business
Alarm.com Prices $435.0 Million 0% Convertible Senior Notes Offering (up 47.5% Conversion Premium)
TYSONS, Va.--(BUSINESS WIRE)-- Alarm.com (Nasdaq: ALRM) announced today the pricing of $435.0 million aggregate principal amount of 0% Convertible Senior
About this update from Alarm.com Holdings, Inc.
[{"type":"text","content":" TYSONS, Va.--(BUSINESS WIRE)--\nAlarm.com (Nasdaq: ALRM) announced today the pricing of $435.0 million aggregate principal amount of 0% Convertible Senior Notes due 2026 (the “notes”) in a private placement (the “offering”) to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). Alarm.com has increased the size of the offering from $350.0 million to $435.0 million (or $500.0 million if the initial purchasers’ option to purchase additional notes is exercised in full as described in following paragraph).\n\nAlarm.com has also granted the initial purchasers of the notes an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $65.0 million aggregate principal amount of notes from Alarm.com. The sale of the notes is expected to close on January 20, 2021, subject to customary closing conditions.\n\nThe notes will be general unsecured obligations of Alarm.com and will not bear regular interest, and the principal amount of the notes will not accrete. The notes will mature on January 15, 2026, unless earlier converted, redeemed or repurchased.\n\nUse of Proceeds: Alarm.com estimates that the net proceeds from the offering will be approximately $421.3 million (or approximately $484.3 million if the initial purchasers exercise their option to purchase additional notes in full) in net proceeds to Alarm.com after deducting the initial purchasers’ discounts and commissions and estimated offering expenses payable by Alarm.com. Alarm.com expects to use the net proceeds from the offering to repay all outstanding borrowings under, and terminate, its credit agreement and for working capital and other general corporate purposes. Alarm.com may use a portion of the proceeds from the offering for acquisitions or strategic investments in complementary businesses or technologies, although it does not currently have any plans for any such acquisitions or investments. If the initial purchasers exercise their option to purchase additional notes, Alarm.com expects to use the net proceeds from the sale of the additional notes for other general corporate purposes as described above.\n\nAdditional Details for the 0% Convertible Senior Notes due 2026\n\nThe notes will be convertible at the option of the holde...