WebMD to redeem its outstanding 3.125% convertible notes on Dec. 30

By Melissa Kory

Cleveland, Dec. 14 - WebMD Health Corp. announced that it intends to redeem its outstanding 3.125% convertible notes due 2025.

The convertibles will be redeemed on Dec. 30 at 100.893%, plus accrued interest to, but excluding, the redemption date.

As of the close of trading on Dec. 14, there were about $84.8 million of 3.125% notes outstanding, which are convertible into 2.4 million shares of common stock, based on the conversion rate of 28.5503 shares for each $1,000 principal amount of the notes, or $35.03 per share.

The closing price of the shares was $50.06 on Dec. 14.

Holders may convert their 3.125% notes into WebMD common stock at any time prior to 5 p.m. ET on Dec. 28. The notes not converted will be redeemed for cash.

The redemption will be funded from cash and cash equivalents on hand.

WebMD is a New York-based provider of health information services through public and private online portals and health-focused publications.

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