Teladoc talks $225 million seven-year convertibles to yield 0.875% to 1.375%, up 27.5% to 32.5%

By Abigail W. Adams

Portland, Me., May 2 – Teladoc Inc. plans to price $225 million in seven-year convertible notes after the market close on Thursday with price talk for a coupon of 0.875% to 1.375% and an initial conversion premium of 27.5% to 32.5%, according to a market source.

Jefferies & Co., J.P. Morgan Securities LLC and Piper Jaffray & Co. are joint bookrunners for the Rule 144A deal, which carries a greenshoe of $33.75 million.

The notes are contingently convertible until Nov. 15, 2024 when they become freely convertible, according to a company news release.

The notes are non-callable until May 22, 2022 and then callable subject to a 130% hurdle with a make-whole.

Conversion will be settled in cash, shares or a combination of both, according to a company news release.

There is dividend and takeover protection.

Proceeds will be used for working capital and general corporate purposes, including the pursuit of strategic acquisitions.

Teladoc is a Purchase, N.Y.-based provider of virtual healthcare delivery services.

© 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.