Model N Prices $220 Mln, 1.875% Convertible Senior Notes

(RTTNews) - Model N, Inc. (MODN), a cloud revenue management solutions provider, said on Thursday that it has priced its $220 million convertible senior notes due March 15, 2028.

The company has also granted the initial purchasers an option to purchase up to an additional $33 million notes.

The sale of the notes is expected to be closed on March 13.

Model N intends to use around $166.2 million of the net proceeds from the offering to repurchase approximately $138 million principal amount of its 2.625 percent convertible senior notes due 2025.

The remainder of the net proceeds will be used for working capital and other general corporate purposes.

The initial conversion rate is 23.2364 shares of common stock per $1,000 principal amount of notes.

The notes will be senior, unsecured obligations of Model N, and interest will be payable semi-annually in arrears.

Contemporaneously, the firm entered into separate and individually negotiated transactions with certain holders of its 2025 notes to repurchase around $138 million of the 2025 notes for around $166.2 million in cash.