Enovis greenshoe bumps 3.875% five-year convertibles to $460 million

By William Gullotti

Buffalo, N.Y., Oct. 25 – The underwriters of Enovis Corp.’s offering of 3.875% convertible notes due Oct. 15, 2028 fully exercised their $60 million over-allotment option in full, bringing the total issue size to $460 million, according to an 8-K filing with the Securities and Exchange Commission.

As previously reported, Enovis priced $400 million of the convertible notes after the market close on Oct. 19 at par.

Although the convertibles are non-callable, they are subject to mandatory redemption at 101 plus accrued interest if the company’s acquisition of LimaCorporate SpA is not consummated by June 30, 2024.

The notes are putable upon a fundamental change.

J.P. Morgan Securities LLC and UBS Securities LLC were bookrunners for the Rule 144A offering.

With the greenshoe exercised, the net proceeds will be $445.1 million.

Enovis initially indicated that it expected to use $53.9 million of the net proceeds to cover the call spread. The company now intends to use approximately $62 million of the net proceeds for the call spread.

The remainder will be used, together with borrowings under its new $400 million term loan and cash on hand, to fund the cash purchase price of the acquisition of LimaCorporate.

Enovis is a Wilmington, Del.-based medical technology company.

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