TransMedics greenshoe exercised, ups 1.5% convertibles to $460 million

By William Gullotti

Buffalo, N.Y., May 11 – The underwriters for TransMedics Group Inc.’s 1.5% five-year convertible notes exercised their full $60 million greenshoe, boosting the deal size to $460 million, according to an 8-K filing with the Securities and Exchange Commission.

The company priced the initial $400 million of the convertibles notes after market close on Monday at par with a coupon of 1.5% and an initial conversion premium of 32.5%.

The initial size of the offering was $300 million with a greenshoe of $45 million.

Pricing came richer than talk for a coupon of 1.75% to 2.25% and at the rich end of talk for an initial conversion premium of 27.5% to 32.5%, as previously reported.

The notes are non-callable until June 8, 2026 and then subject to a 130% hurdle.

Morgan Stanley & Co. LLC (lead left) and J.P. Morgan Securities LLC were bookrunners for the Rule 144A offering.

In connection with the offering, the company entered into capped call transactions with a cap price $141.88, which represents a 100% premium over the last reported sales price of stock.

With the greenshoe fully exercised, the company’s net proceeds from the issue will be $445.4 million.

Approximately $45.3 million of net proceeds will be used to cover the cost of the call spread.

Remaining proceeds will be used to expand its logistics network through partnerships and acquisitions and for general corporate purposes.

TransMedics is an Andover, Mass.-based medical technology company.

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