Trulia, Inc. (NYSE: TRLA) has announced its offering of USD200m aggregate principal amount of its 2.75% convertible senior notes due 2020 in a private placement to qualified institutional buyers.
The size of the transaction was increased from the previously announced aggregate principal amount of USD150m. Trulia has granted the initial purchasers a 30-day option to purchase up to an additional USD30m aggregate principal amount of the notes to cover over-allotments, if any. The offering is expected to close on December 17, 2013, subject to satisfaction of customary closing conditions.
Trulia expects to receive net proceeds from the offering of USD193.2m, after deducting the initial purchasers´ discount and estimated offering expenses payable by it. Trulia intends to use USD30m of the net proceeds to buy back shares of its common stock from purchasers of the notes concurrently with this offering, and to use approximately USD7.2m of the net proceeds to repay all of the amounts outstanding under its credit facility and to terminate this facility. The remainder would be used for working capital and other general corporate purposes.