Pandora Prices $300 Million In Notes

Notes

PANDORA MEDIA, INC. has priced a private placement of $300 million aggregate principal amount of 1.75% per year convertible senior notes due 2020 and has in addition granted initial buyer MORGAN STANLEY AND CO. a 30-day option to purchase up to an additional $45 million aggregate principal amount of the notes.

The sale is expected to settle on DECEMBER 9th and result in about $292.7 million in net proceeds after purchaser's discount and expenses.

The notes are senior, unsecured obligations of PANDORA and will mature on DECEMBER 1, 2020 unless repurchased, redeemed, or converted before then.  PANDORA cannot redeem the notes before DECEMBER 5, 2018 but can then redeem the notes for cash if the stock price reaches at least 130% of the conversion price then in effect and certain other conditions are met. 

The company says it will use about $37.5 million of the net proceeds to pay the cost of $25.26/share capped call transactions with MORGAN STANLEY and JP MORGAN CHASE and for general corporate purposes.

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