Cardlytics Announces Proposed Private Offering of $200 Million of Convertible Senior Notes

ATLANTA, Sept. 16, 2020 (GLOBE NEWSWIRE) -- Cardlytics, Inc. (NASDAQ: CDLX), an advertising platform in banks' digital channels, today announced that it intends to offer, subject to market conditions and other factors, $200 million principal amount of convertible senior notes due 2025 (the “notes”) in a private placement to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). Cardlytics also intends to grant the initial purchasers of the notes an option to purchase up to an additional $30 million principal amount of notes.

The notes will be general unsecured obligations of Cardlytics and will accrue interest payable semiannually in arrears. The notes will be convertible under certain circumstances into cash, shares of Cardlytics’ common stock or a combination of cash and shares of Cardlytics’ common stock, at Cardlytics’ election. The interest rate, initial conversion rate and other terms of the notes will be determined at the time of pricing of the offering.

Cardlytics intends to use a portion of the net proceeds from the offering to pay the cost of the capped call transactions described below. If the initial purchasers exercise their option to purchase additional notes, Cardlytics expects to use a portion of the net proceeds from the sale of the additional notes to enter into additional capped call transactions. Cardlytics intends to use the remainder of the net proceeds for working capital or other general corporate purposes, which may include potential acquisitions and strategic transactions.

In connection with the pricing of the notes, Cardlytics intends to enter into privately negotiated capped call transactions with one or more of the initial purchasers or their respective affiliates and/or other financial institutions (the “option counterparties”). The capped call transactions will cover, subject to customary adjustments, the number of shares of Cardlytics’ common stock that will initially underlie the notes. The capped call transactions are expected to offset the potential dilution to Cardlytics’ common stock as a result of any conversion of the notes, with such reduction subject to a cap.