Envestnet, Inc. (NYSE: ENV), a provider of intelligent systems for wealth management and financial wellness, recently announced the closing of its offering of $517.5 million aggregate principal amount of 0.75% convertible notes due 2025. According to Envestnet, the Notes were sold in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933.
Envestnet further revealed that the Notes are general unsecured obligations and will be guaranteed on an unsecured basis by Envestnet Asset Management, Inc., which is a wholly-owned subsidiary of Envestnet. The Notes and the Guarantee will also be subordinated in right of payment to Envestnet’s and the Guarantor’s obligations, under Envestnet’s revolving credit facility.
“The Notes were offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act. Neither the Notes nor the shares of [Envestnet’s] common stock into which the Notes are convertible have been, or will be, registered under the Securities Act or the securities laws of any other jurisdiction, and unless so registered, may not be offered or sold in the United States except pursuant to an applicable exemption from such registration requirements.”
The Notes will mature on August 15, 2025, unless earlier purchased, redeemed or converted. Interest accrues on the Notes at a rate of 0.75% per year and is payable semiannually, in arrears, on February 15 and August 15 of each year, beginning on February 15, 2021.