Alarm.com Holdings, Inc. (ALRM), a leading company in the intelligently connected property sector, announced on Wednesday the pricing of $425 million in aggregate principal amount of 2.25% Convertible Senior Notes due 2029, issued via a private placement.
Initially set at $375 million, the offering has been increased to $425 million, with a potential total of $500 million if the initial purchasers fully exercise their option to buy additional notes. Alarm.com has afforded these purchasers a 13-day window, starting from the issuance date, to acquire up to an extra $75 million in principal amount of notes. The completion of the sale is anticipated by May 31, pending standard closing conditions.
The notes, categorized as general unsecured obligations of the company, will carry an annual interest rate of 2.25%, payable semiannually in arrears on June 1 and December 1 starting from December 1. Unless converted, redeemed, or repurchased earlier, the notes are set to mature on June 1, 2029.
Alarm.com plans to allocate approximately $53.6 million of the net proceeds toward financing capped call transactions, with an additional $75 million earmarked for the repurchase of its common stock. The remaining funds will be directed toward general corporate purposes.
