Envista tightens talk on $435 million five-year convertible notes to coupon of 1% to 1.5%, up 32.5%

By Abigail W. Adams

Portland, Me., Aug. 7 – Envista Holdings Corp. tightened talk on its $435 million offering of five-year convertible notes (Baa3) to a coupon of 1% to 1.5% and an initial conversion premium of 32.5% with the deal slated to price after the market close on Monday, according to a market source.

Coupon talk tightened 100 basis points from initial talk for a coupon of 2% to 2.5% and an initial conversion premium of 27.5% to 32.5%.

J.P. Morgan Securities LLC (lead left), BofA Securities Inc., and Wells Fargo Securities LLC are bookrunners for the Rule 144A offering, which carries a greenshoe of $65.25 million.

The notes are non-callable until Aug. 17, 2026 and then subject to a 130% hurdle.

They are putable upon a fundamental change.

The notes will be settled in cash up to the principal amount with any remainder to be settled in cash, shares or a combination of both.

The company will enter into privately negotiated transactions with holders of its 2.375% convertible notes due 2025 to exchange the notes for cash and shares.

Proceeds will be used to fund the cash portion of the exchange and for general corporate purposes, which may include retiring the remaining outstanding amount of the 2.375% convertible notes due 2025 through exchanges or redemptions.

Envista is a Brea, Calif-based dental equipment and supplies manufacturer.

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