By James McCandless
San Antonio, Aug. 21 – Ontrak, Inc. priced a $42.5 million offering of $25-par series A cumulative perpetual preferred stock with a dividend of 9.5%, according to an FWP filing with the Securities and Exchange Commission.
There is a $6,375,000 greenshoe.
B. Riley Securities, Inc., Ladenburg Thalmann & Co. Inc. and William Blair & Co. are the bookrunners.
ThinkEquity is the lead manager
Dividends are payable on Feb. 28, May 30, Aug. 31, and Nov. 30 starting on Nov. 30, 2020.
The preferreds are redeemable on or after Aug. 21, 2025 at par. Prior to that, the preferreds are redeemable within 90 days after a delisting event or with 120 days after a change of control at par.
Ontrak plans to use the proceeds for general corporate purposes, which may include working capital, mergers and acquisitions, and investments in technology.
The company plans to list the preferreds on the Nasdaq under the symbol “OTRKP.”
Ontrak is a Santa Monica, Calif.-based medical technology company.
| Issuer: | Ontrak, Inc.
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| Description: | Series A cumulative perpetual preferred stock
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| Amount: | $42.5 million, or 1.7 million shares
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| Greenshoe: | $6,375,000, or 255,000 shares
|
| Maturity: | Perpetual
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| Bookrunners: | B. Riley Securities, Inc., Ladenburg Thalmann & Co. Inc. and William Blair & Co.
|
| Lead manager: | ThinkEquity
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| Co-managers: | Incapital, Benchmark Co., Boenning & Scattergood, Colliers Securities and Kingswood Capital Markets
|
| Dividend: | 9.5%
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| Price: | Par of $25.00
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| Yield: | 9.5%
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| Call: | On or after Aug. 21, 2025 at par; prior to that, within 90 days after a delisting event or with 120 days after a change of control at par
|
| Pricing date: | Aug. 21
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| Settlement date: | Aug. 25
|
| Distribution: | SEC registered
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| Listing: | Nasdaq: OTRKP
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