Performant Financial plans $80 million five-year convertibles to yield 4.75%-5.25%, up 17.5%-22.5%

By Rebecca Melvin

New York, Jan. 28 – Performant Financial Corp. plans to price $80 million of five-year convertible bonds in a registered offering that was talked to yield 4.75% to 5.25% with an initial conversion premium of 17.5% to 22.5%, according to market sources.

Performant Financial also plans to price $50 million of common stock.

Morgan Stanley & Co. LLC and SunTrust Robinson Humphrey Inc. are the joint bookrunners of the convertibles offering, which has a $12 million over-allotment option.

The bonds are non-callable.

Proceeds are earmarked to complete the company’s acquisition of Premier Healthcare Exchange Inc., or if the acquisition is not completed, to repay debt under the company’s senior secured credit facility.

The Livermore, Calif.-based company is a provider of technology to help identify and recover delinquent or defaulted assets and improper payments.

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