By Abigail W. Adams
Portland, Me., June 2 – Livongo Health Inc. priced an upsized $475 million of five-year convertible notes after the market close on Monday at par with a coupon of 0.875% and an initial conversion premium of 27.5%, according to a company news release.
Pricing came toward the rich end of talk for a coupon of 0.75% to 1.25% and at the midpoint of talk for an initial conversion premium of 25% to 30%, according to a market source.
Morgan Stanley & Co. LLC (lead left), J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC were bookrunners for the Rule 144A offering, which carries an upsized greenshoe of $75 million.
The initial size of the offering was $400 million with a greenshoe of $60 million.
The notes are non-callable until June 5, 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 offering, the company entered into capped call transactions with a cap price of $118.54, which represents a premium of 100% over the last reported sales price of stock.
Net proceeds are expected to be $461.1 million, or $534 million if the greenshoe is exercised in full.
Approximately $60.3 million of proceeds will be used to cover the cost of the call spread with the remaining amount to be used for general corporate purposes.
Livongo Health is a Mountain View, Calif.-based data-based health coaching program with products that help with the management of chronic diseases.
| Issuer: | Livongo Health Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $475 million
|
| Greenshoe: | $75 million
|
| Maturity: | June 1, 2025
|
| Bookrunners: | Morgan Stanley & Co. LLC (lead left), J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC
|
| Coupon: | 0.875%
|
| Price: | Par
|
| Yield: | 0.875%
|
| Conversion premium: | 27.5%
|
| Conversion price: | $75.57
|
| Conversion rate: | 13.2329
|
| Call options: | Non-callable until June 5, 2023 and then subject to a 130% hurdle
|
| Pricing date: | June 1
|
| Settlement date: | June 4
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 0.75% to 1.25% and initial conversion premium of 25% to 30%
|
| Stock symbol: | Nasdaq: LVGO
|
| Stock price: | $59.27 at market close June 1
|
| Market capitalization: | $5.8 billion
|
© 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.
