Insulet greenshoe exercise increases convertibles to $201.25 million

By Angela McDaniels

Tacoma, Wash., June 6 – The underwriter for Insulet Corp.’s 2% five-year convertible notes, J.P. Morgan Securities LLC, exercised its $26.25 million over-allotment option in full, increasing the size of the issue to $201.25 million from $175 million.

The company priced the convertibles at par with an initial conversion premium of 32.5% ahead of the market open on Wednesday and disclosed the greenshoe exercise in an 8-K filing with the Securities and Exchange Commission on Friday. Settlement is expected to occur Monday.

Pricing for the registered, off-the-shelf deal came at the rich end of talk, which was for a 2% to 2.5% coupon and a 27.5% to 32.5% premium.

The notes are non-callable for three years and then provisionally callable in year four if the company’s share price exceeds 150% of the conversion price. They are freely callable after that.

About $120 million of the proceeds will be used to repurchase about $86 million principal amount of Insulet’s 3.75% convertibles due 2016. Remaining proceeds will be used for general corporate purposes, which may include financing redemptions, repurchases and/or settlement of conversions of Insulet’s 3.75% convertibles.

Insulet is a Bedford, Mass.-based medical device maker.

© 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.