The Capital Markets team advised the initial purchasers on K12, Inc.’s successful offering of 1.125% Convertible Senior Notes due 2027. The deal initially launched at $300 million, but was later upsized to $420 million, including full exercise of the greenshoe. The initial conversion price of the notes featured a premium of 35% up from the reference price of $39.17. In connection with the offering, K12 and certain investment bank dealers entered into capped call transactions, which mitigates equity dilution and/or offsets payments due upon conversion of the notes and effectively raises the conversion price of the notes to approximately $86.17 per share, a 120% premium over the reference price.
K12 Inc. (NYSE: LRN) helps students of all ages reach their full potential through inspired teaching and personalized learning. The company provides innovative, high-quality online and blended education solutions, curriculum, and programs to students, schools and enterprises in primary, secondary, and post-secondary settings. K12 is a premier provider of career readiness education services and a leader in skills training, technology staffing, and talent development. The company provides programs which combine traditional high school academics with career technical education through its Destinations Career Academies. Adult learning is delivered through K12’s subsidiary, Galvanize, a leader in developing capabilities for individuals and corporations in technical fields such as software engineering and data science. K12 has delivered millions of courses over the past decade and serves students in all 50 states and more than 100 countries.
The Goodwin team was led by James Barri, Rick Kline, Audrey Leigh, Kim de Glossop, John Mei, Patty Shields, John Servidio, Benjamin Drai, Daniel Karelitz, and Alexander Plaum.
For more information, please see K12’s closing press release for the offering.