Vocera talks $125 million five-year convertible notes to yield 1.25% to 1.75%, up 30% to 35%

By Abigail W. Adams

Portland, Me., May 14 – Vocera Communications Inc. plans to price $125 million of five-year convertible notes after the market close of Monday with price talk for a coupon of 1.25% to 1.75% and an initial conversion premium of 30% to 35%, according to a market source.

Morgan Stanley & Co. Inc. and Piper Jaffray & Co. Inc. are bookrunners for the Rule 144A deal, which carries a greenshoe of $18.75 million.

The notes are non-callable. Holders may require the company to repurchase the notes upon a fundamental change.

The notes are contingently convertible until Feb. 15, 2023.

There will be a conversion rate adjustment for holders who convert the notes in connection to certain corporate events, according to a company news release.

The notes will be settled in cash, shares or a combination of both at the company’s option.

In connection with the offering, Vocera will enter into capped call transactions with the initial purchasers of the notes.

Proceeds will be used to cover the cost of the call spread and for general corporate purposes including research and development and acquisitions or investments.

Vocera is a San Jose, Calif.-based communications solutions provider for mobile workers in a variety of industries.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.