Bending Spoons, the Milan-based company that buys and overhauls established software brands, sold about $1.8 billion of high-yield bonds after strong demand let it enlarge the offering, giving it a fresh war chest for acquisitions.
The deal has two tranches, both due 2032 and priced at 100% of face value: $1.25 billion of dollar notes carrying a 9.625% coupon and 500 million euros of notes at 8.625%. The company originally sought the equivalent of about $1.5 billion. The dollar notes will be issued by Bending Spoons US Inc. and the euro notes by Bending Spoons Operations S.p.A., both indirect subsidiaries; the parent company is not issuing or guaranteeing the debt.
Borrowing to buy
Bending Spoons said it plans to use the net proceeds mainly to fund future acquisitions, as well as to cover the offering’s costs and for general corporate purposes. The company has built its business by acquiring well-known consumer and business apps, among them Evernote, WeTransfer, Vimeo and Eventbrite, then cutting costs, rebuilding the products and raising prices.
The coupons, near 10% in dollars, show the price of that strategy in the leveraged-finance market. The notes are secured, and investors are betting that the company’s record of squeezing cash flow from mature software assets will support the debt as it adds more targets.
Listing and settlement
Bending Spoons said it will apply to list the notes on the Luxembourg Stock Exchange’s Euro MTF market. Settlement is expected on or about Nov. 4, subject to customary conditions. The notes were sold to institutional investors in a private offering and have not been registered with U.S. securities regulators.
