Teladoc greenshoe ups 1.375% convertibles to $287.5 million

By Susanna Moon

Chicago, May 9 – Teladoc, Inc. said underwriters fully exercised the $37.5 million over-allotment option on its 1.375% seven-year convertible notes.

As a result, Teladoc issued $287.5 million principal amount of the 1.375% convertibles on May 8, according to an 8-K filing with the Securities and Exchange Commission.

Teladoc priced an upsized $250 million of the seven-year convertibles after the market close on May 3 with a 28.5% initial conversion premium. The greenshoe was increased from $33.75 million.

The deal was increased from $225 million and came with a coupon at the cheap end of talk or a rate of 0.875% to 1.375% and toward the cheap end of talk for a conversion premium of 27.5% to 32.5%.

Jefferies & Co., J.P. Morgan Securities LLC and Piper Jaffray & Co. are joint bookrunners for the Rule 144A deal.

The notes are contingently convertible until Nov. 15, 2024 when they become freely convertible.

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

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 health care 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.