Benefitfocus to buy back $100.2 million 1.25% convertibles due 2023

By Rebecca Melvin

Concord, N.H., Sept. 15 – Benefitfocus Inc. has agreed to buy back $100.2 million principal amount of its 1.25% convertible senior notes due 2023, according to a company news release on Wednesday.

The repurchases are being made through privately negotiated purchase agreements with certain holders of the notes. The combined repurchase will cost $98.2 million in cash.

The repurchased notes represent about 45% of the outstanding principal amount of the notes, with $121.1 million remaining outstanding after the repurchases, which are expected to close on Sept. 20.

The Charleston, S.C.-based benefits software company noted that the repurchases will have the effect of reducing its annual interest payments by $1.25 million.

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