LONDON - Alphawave IP Group plc (LN: AWE), a leader in high-speed connectivity for global data infrastructure, has priced an offering of $150 million in senior unsecured convertible bonds due 2030, according to a press release statement. The bonds, which will be issued at par, carry a coupon rate of 3.75% per annum, payable semi-annually starting March 18, 2025.
The company intends to allocate the proceeds from the bond offering to finance its growth initiatives, including investments in research and development, capital expenditures, and other general corporate purposes. The funds may also be used to repay existing debt obligations.
The initial conversion price for the bonds has been set at $1.9423, which is a 30% premium over the concurrent placement of existing shares. Major shareholders Tony Pialis, Rajeevan Mahadevan, and Jonathan Rogers (NYSE:ROG) have collectively subscribed to $20 million of the bond offering through their investment vehicles.
Alphawave has confirmed that the concurrent placement of over 21 million existing ordinary shares was completed at a clearing price of $1.4941 per share. The company did not receive any proceeds from the sale of these shares.
The settlement and delivery of the bonds are expected to occur around December 18, 2024. The bonds will be redeemable at par on March 1, 2030, unless they are converted, redeemed, or purchased and canceled prior to this date. The issuer reserves the right to redeem all outstanding bonds after March 22, 2028, under certain conditions.
Bondholders will have the right to require redemption of their bonds at par plus accrued interest in the event of a change of control at the issuer or a free float event, as outlined in the final terms and conditions of the bonds.
The bonds are expected to be admitted to trading on an internationally recognized stock exchange before the first interest payment date. Alphawave has also agreed to a lock-up period of 90 days post-closing for itself and its subsidiaries.
Barclays (LON:BARC) Bank PLC acted as the Sole Global Coordinator and Joint Bookrunner, with BMO Capital Markets Limited also serving as a Joint Bookrunner. ICR Capital served as the independent financial adviser to Alphawave in relation to the offering.
This announcement is based on a press release statement and is for informational purposes only. It is not an offer of securities in any jurisdiction.
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