PRCH - Porch Group prices $333M notes repurchase $200M of notes due 2026

2023-04-17 08:49:24 ET

• Software company Porch Group ( NASDAQ: PRCH ) said on Monday it has priced a $333M private offering of 6.75% senior secured convertible notes due Oct. 1, 2028, and a concurrent privately negotiated repurchase of $200M of 0.75% convertible senior notes due 2026.
• The interest on the new notes is payable semi-annually in arrears on April 1 and October 1 of each year
• The 2 transactions are expected to close concurrently on April 20.
• The new notes will be convertible into cash, shares or a combination of cash and shares at Porch's election.
• The conversion will have an initial conversion rate of 39.9956 shares per $1,000 principal amount of the new notes, which is equivalent to an initial conversion price of ~$25.00 per share.
• The net proceeds from the new notes are intended to be used to repurchase $200M of the existing notes. It will also be used to fund the repayment of a $10M senior secured term loan of a Porch Group subsidiary.
• The remainder of the net proceeds will be used for general corporate purposes.
• "This transaction will allow us to reduce our medium-term debt maturity from $425M to $225M, while delivering additional liquidity to the business, all while minimizing dilution by maintaining a $25 per share conversion price," CFO Shawn Tabak said.
• PRCH shares were trading -4.48% pre-market.
• Source: Press Release

For further details see: