Alarm.com Holdings, Inc. (ALRM), a platform for the intelligently connected property, announced Wednesday the pricing of $425.0 million aggregate principal amount of 2.25% Convertible Senior Notes due 2029 in a private placement.
The company has increased the size of the offering to $425.0 million from $375.0 million. It would be $500 million if the initial purchasers' option to purchase additional notes is exercised in full.
Alarm.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 $75.0 million aggregate principal amount of notes from the firm. The sale of the notes is expected to close on May 31, subject to customary closing conditions.
The company noted that the notes will be its general unsecured obligations and will bear interest at a rate of 2.25% per year, payable semiannually in arrears on June 1 and December 1 of each year, beginning on December 1.
The notes will mature on June 1, 2029, unless earlier converted, redeemed or repurchased.
Alarm.com expects to use around $53.6 million of the net proceeds from the offering to pay the cost of the capped call transactions, and around $75.0 million to repurchase shares of its common stock.
The remainder of the net proceeds from the offering will be used for general corporate purposes.
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