Business
Porch Group Closes $425 Million Convertible Senior Notes Offering
Original Offering was Upsized and Greenshoe was Fully Exercised on the Back of Strong Demand Net Proceeds Enable Company to Retire Higher Interest Rate Legacy
About this update from Porch Group, Inc.
[{"type":"text","content":"Original Offering was Upsized and Greenshoe was Fully Exercised on the Back of Strong Demand Net Proceeds Enable Company to Retire Higher Interest Rate Legacy Debt and Accelerate Growth Through Organic Investment and Potential Acquisitions Portion of Proceeds Used to Purchase a Capped Call to Reduce Potential Dilution to a 100% Premium of Last Reported Share Price SEATTLE, Sept. 17, 2021 (GLOBE NEWSWIRE) -- Porch Group, Inc. (“Porch” or “the Company”) (NASDAQ: PRCH), a leading vertical software company reinventing home services, has closed its offering of $425 million aggregate principal amount convertible senior notes due 2026 (the “notes”), after upsizing the transaction from $350 million to $385 million and including the full exercise of the option to purchase $40 million of additional notes granted by Porch to the initial purchasers. “We appreciate the investment and support of the new note holders, which demonstrates Porch’s access to committed long-term capital partners and ability to scale the business,” said Matt Ehrlichman, Porch founder, chairman and CEO. “The proceeds raised provides us with the resources to payoff legacy debt, accelerate our M&A strategy, reinvest in our business and ultimately enhance shareholder value. We purchased a capped call in order to mitigate potential dilution to current equity holders, consistent with our positive view of the exciting path ahead.” The notes are senior, unsecured obligations of Porch, and interest is payable semiannually in arrears on March 15 and September 15 of each year, beginning on March 15, 2022. The notes will mature on September 15, 2026, unless earlier repurchased, redeemed or converted. Porch may not redeem the notes prior to September 20, 2024. Porch may redeem for cash all or any portion of the notes, at Porch’s option, on or after September 20, 2024 if the last reported price of Porch’s common stock (“common stock”) has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which Porch provides notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest ...