Alarm.com sold stock last week in the form of a US$435m five-year convertible bond issue that is eligible to convert at prices above US$147.19, a 47.5% premium. The cloud-based home management solutions provider will pay a zero percent coupon, so the only cost is that of potential dilution at ultra-high share prices. JP Morgan, Barclays and Bank of America launched the trade at a US$350m funding target marketed for one day on Thursday at a 0%–0.5% coupon and 37.5%–42.5% conversion premium, before upsizing on strong investor demand that allowed for pricing at 0%, up 47.5%. Alarm’s underlying shares fell 7.3% to US$99.79 over the one-day marketing period. Alarm, which only last month initiated a US$100m share repurchase programme, plans to use the proceeds raised to fully repay US$50m currently drawn on a revolving credit facility on which it pays about 2.9% to access.