Envista talks $400 million five-year convertible notes to yield 1.875%-2.375%, up 30%-35%

By Abigail W. Adams

Portland, Me., May 18 – Envista Holdings Corp. plans to price $400 million of five-year convertible notes after the market close on Monday with price talk for a coupon of 1.875% to 2.375% and an initial conversion premium of 30% to 35%, according to a market source.

J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC and BofA Securities Inc. are joint bookrunners for the Rule 144A offering, which carries a greenshoe of $60 million.

The notes are non-callable until June 1, 2023 and then subject to a 130% hurdle.

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

In connection with the pricing of the notes, the company will enter into capped call transactions.

Proceeds will cover the cost of the call spread and for general corporate purposes, which may include cost reduction and strategic growth initiatives, working capital, refinancing debt, or the pursuit of acquisitions.

Envista is a Brea, Calif.-based holding company that provides dental consumable, equipment and services through its subsidiaries.

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