Vocera greenshoe lifts 1.5% five-year convertibles to $143.75 million

By Susanna Moon

Chicago, May 18 – Vocera Communications, Inc. fully exercised the $18.75 million over-allotment option on its 1.5% five-year convertible notes on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

This brings the total deal size to $143.75 million, up from $125 million at pricing on Monday.

As reported, Vocera priced the convertibles after the market close on Monday at the midpoint of talk with a coupon of 1.5% and an initial conversion premium of 32.5%.

Price talk had been 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. LLC and Piper Jaffray & Co. Inc. are bookrunners for the Rule 144A deal.

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 with certain corporate events, according to a previous company announcement.

Conversions 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.

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