News Column

j2 Global Announces Pricing of $350,000,000 of 3.25% Convertible Senior Notes Due 2029

June 28, 2014



By a News Reporter-Staff News Editor at Investment Weekly News -- j2 Global, Inc. ("j2 Global" or the "Company") (NASDAQGS: JCOM) announced that it had priced an offering of $350,000,000 of its 3.25% convertible senior notes due 2029 (the "Notes"). j2 Global intends to use the net proceeds from the offering for general corporate purposes, which may include acquisitions or payment of the offer price in respect of any notes tendered in connection with a subsidiary's offer to purchase its outstanding notes.

The Notes are convertible into cash or shares of j2 Global common stock, or a combination thereof at j2 Global's election, subject to satisfaction of certain conditions and during certain periods. Interest on the Notes will be paid semi-annually at a rate of 3.25% per year and the Notes will mature on June 15, 2029. The initial conversion rate of the Notes is 14.4159 shares of common stock per $1,000 principal amount, which is equivalent to an initial conversion price of approximately $69.37 per share of common stock, subject to adjustment in certain circumstances. This initial conversion price represents a premium of 45% relative to the last reported sale price on June 11, 2014 of j2 Global's common stock of $47.84. The Notes will not be guaranteed by any of j2 Global's subsidiaries. Beginning June 15, 2021, holders will receive contingent interest for certain periods if the trading price of the Notes exceeds a certain threshold. Any contingent interest payable on the Notes will be in addition to the regular interest payable on the Notes. The Notes are subject to redemption for cash at j2 Global's option on and after June 20, 2021. In addition, holders will be able to cause j2 Global to repurchase the Notes for cash in June of 2021 and 2024 and upon the occurrence of certain events.

j2 Global has granted the underwriters an over-allotment option to purchase up to an additional $52,500,000 aggregate principal amount of Notes. BofA Merrill Lynch, Citigroup and Wells Fargo Securities are acting as joint book-running managers in the offering.

The offering of the Notes has been registered under the Securities Act of 1933, as amended, and j2 Global refers you to its Registration Statement on Form S-3 (333-196640) filed with the Securities and Exchange Commission (the "SEC") for additional information about the Notes and the offering. The preliminary prospectus relating to the offering, and the final prospectus when available, may be obtained from BofA Merrill Lynch at 222 Broadway, New York NY 10038, Attention: Prospectus Department or by email at dg.prospectus_requests@baml.com or by telephone at 800-294-1322; Citigroup at c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by telephone at 800-831-9146; or Wells Fargo Securities, Attention: Equity Syndicate Department, 375 Park Avenue, New York, New York, 10152 or by telephone at (800) 326-5897 or email a request to cmclientsupport@wellsfargo.com.

Keywords for this news article include: j2 Global Inc, Banking and Finance.

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Source: Investment Weekly News


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