LONDON - Alphawave IP Group plc (LN: AWE), a leader in high-speed connectivity technology for data centers, announced today the launch of a $150 million senior unsecured convertible bond offering, set to mature in 2030. The offering targets institutional investors and is managed by Barclays (LON:BARC) Bank PLC as the Sole Global Coordinator, alongside BMO Capital Markets Limited as the Joint Bookrunner.
The bonds, issued at par, are expected to carry a semi-annual coupon rate between 3.25% and 3.75%, starting March 1, 2025. Convertible into ordinary shares of Alphawave, the initial conversion price is to be set at a 27.5% to 32.5% premium above the reference share price, determined by the concurrent Delta Placement's accelerated bookbuild.
Alphawave's existing shareholders, Tony Pialis, Rajeevan Mahadevan, and Jonathan Rogers (NYSE:ROG), who collectively own approximately 36% of the company, expressed their intention to participate with a $20 million commitment in aggregate principal amount of the bonds.
The offering follows a year of substantial growth for Alphawave, with over $100 million in new bookings per quarter. The raised capital is intended for research and development, capital expenditures, and other general corporate purposes, which may include debt repayment.
Settlement and delivery of the bonds are anticipated to occur on or about December 18, 2024. The company retains the right to redeem the bonds under specific conditions outlined in the final terms and conditions.
The offering is available to institutional investors outside the United States, Australia, South Africa, and Japan, and in other jurisdictions where distribution is legally restricted. The final terms are expected to be announced following the completion of the bookbuild.
The bonds are slated for admission to trading on an internationally recognized stock exchange before the first interest payment date. Alphawave has committed to an equity lock-up period of 90 calendar days post-closing, subject to customary exemptions.
ICR Capital is serving as the independent financial adviser to Alphawave for the offering. This move aligns with the company's strategic growth plans and its mission to enhance data infrastructure critical to the digital world. The information reported is based on a press release statement.
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