Invacare talks $100 million five-year convertible notes to yield 3.75%-4.25%, up 27.5%-32.5%

By Abigail W. Adams

Portland, Me., March 10 – Invacare Corp. plans to price $100 million of five-year convertible notes after the market close on Thursday with price talk for a coupon of 3.75% to 4.25% and an initial conversion premium of 27.5% to 32.5%, according to a market source.

Morgan Stanley & Co. LLC is the bookrunner for the Rule 144A offering, which carries a greenshoe of $15 million.

The notes are non-callable until March 20, 2024 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 will enter into capped call transactions.

Proceeds will be used to cover the cost of the call spread, to repurchase its 4.5% convertible notes due 2022 in open market or privately negotiated transactions or repay them at maturity, and for general corporate purposes.

Invacare is an Elyria, Ohio-based medical equipment manufacturer.

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