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J2 Global Announces Pricing of $500,000,000 Offering of Convertible Senior Notes
LOS ANGELES--(BUSINESS WIRE)-- J2 Global, Inc. (NASDAQGS:JCOM) (“J2 Global”) today announced the pricing of $500,000,000 aggregate principal amount of 1.75%
About this update from Ziff Davis, Inc.
[{"type":"text","content":" LOS ANGELES--(BUSINESS WIRE)--\nJ2 Global, Inc. (NASDAQGS:JCOM) (“J2 Global”) today announced the pricing of $500,000,000 aggregate principal amount of 1.75% convertible senior notes due 2026 in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). In connection with the offering of the notes, J2 Global granted the initial purchasers an option to purchase, during a 13-day period beginning on, and including, the first day on which the notes are issued, up to an additional $50,000,000 aggregate principal amount of the notes. The offering of the notes is expected to close on November 15, 2019, subject to customary closing conditions.\n\n\nThe notes will be general senior unsecured obligations of J2 Global and bear interest at a rate of 1.75% per year, payable semi-annually in arrears on May 1 and November 1 of each year, beginning on May 1, 2020. The notes will mature on November 1, 2026, unless earlier converted or repurchased. The conversion rate for the notes will initially be 7.9864 shares per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $125.21 per share of J2 Global common stock, and is subject to adjustment under the terms of the notes. The initial conversion price of the notes represents a premium of approximately 32.5% to the last reported sale price of $94.50 per share of J2 Global’s common stock on the Nasdaq Global Select Market on November 12, 2019. Prior to July 1, 2026, the notes will be convertible only upon satisfaction of certain conditions and during certain periods, and thereafter, the notes will be convertible at any time until the close of business on the business day immediately preceding the maturity date. Upon conversion of the notes, J2 Global will pay or deliver, as the case may be, cash, shares of its common stock or a combination of cash and shares of its common stock, at J2 Global’s election. Holders of the notes will have the right to require J2 Global to repurchase for cash all or any portion of their notes upon the occurrence of certain corporate events, subject to certain conditions.\n\n\nJ2 Global expects to use a portion of the net proceeds from the offering of the notes to pay off all amounts outstanding under the existing senior secured credit facil...