Ken Griffin’s Citadel Investment Group, has disclosed, in a new SEC filing, boosting its position in Trulia Inc (NYSE:TRLA), to a total of over 2.5 million shares. In its latest 13F, Citadel revealed holding just some 49,600 shares, and 90,600 shares held under the call and put options. Currently, Citadel’s position in Trulia amasses 6.5% of the company’s stock. The stake is passive by nature and has a value of $78.8 million, at the current stock price of the company.
Trulia, Inc. (NYSE:TRLA) is a $1.16 billion market cap online forum which offers a platform for folks dealing in real estate. It has announced that it will be raising $200 million in the form of senior notes which will attract interest of 2.75 percent annually and will have a term which will extend up to 2020. These notes are being offered to institutional investors in the form of a private placement. The terms also provide initial investors a 30 day option, by exercising which they could buy out an additional $30 million worth senior notes as an incentive to cover over allotments. The offerings were originally scheduled to close on December 17.
From this exercise, the company is expecting to gain $193.2 million as proceeds excluding the $30 million which will be available in the case of first come purchasers exercising their option to benefit from over allotment. From the proceeds, Trulia, Inc. (NYSE:TRLA) is planning to utilize $30 million to initiate a repurchase of its common stock shares from the holders of senior notes. It has also disclosed that it would be using $7.2 million from the senior notes issue exercise to retire its existing debt and park rest of the proceeds under capital expenditure.
Among the largest shareholders of Trulia, aside from Citadel, is Josh Resnick’s Jericho Capital Asset Management, which revealed holding a $38.2 million stake, which contains over 811,700 shares, in its latest 13F. It is followed by Platinum Asset Management, led by Kerr Neilson, which owns 335,000 shares, with a reported value of $15.8 million.
The investment philosophy of Citadel Investment Group is guided by its manager Ken Griffin, who brings to bear his 27 years of vast experience in navigating the financial markets. He started dabbling in the stock market even while he was attending his sophomore year and has since then grown his profits to emerge as a self made billionaire.