By James McCandless
San Antonio, Dec. 16 – Ontrak, Inc. priced $43.25 million more of its $25-par 9.5% series A cumulative perpetual preferred stock at a price of $24.75, according to an FWP filing with the Securities and Exchange Commission.
There is a $6,487,500 greenshoe.
B. Riley Securities, Inc. Ladenburg Thalmann & Co. Inc. and William Blair & Co., LLC are the bookrunners.
Dividends are payable on Feb. 28, May 30, Aug. 31 and Nov. 30.
The preferreds are redeemable on or after Aug. 25, 2025 at par. Prior to that, the preferreds are redeemable within 90 days after a delisting event at par or within 120 days after a change of control at par.
Ontrak plans to use the proceeds for general corporate purposes, which may include working capital, M&A, and investments in technology.
The preferreds, listed on the Nasdaq under the symbol “OTRKP,” were dipping 35 cents on Wednesday morning to $24.38 on volume of about 147,000 shares.
Ontrak is a Santa Monica, Calif.-based medical technology company.
| Issuer: | Ontrak, Inc.
|
| Description: | Series A cumulative perpetual preferred stock
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| Amount: | $43.25 million, or 1.73 million shares
|
| Greenshoe: | $6,487,300, or 259,500 shares
|
| Maturity: | Perpetual
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| Bookrunners: | B. Riley Securities, Inc. Ladenburg Thalmann & Co. Inc. and William Blair & Co., LLC
|
| Co-managers: | Aegis Capital Corp., Benchmark Co., LLC, Incapital LLC and Kingswood Capital Markets
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| Dividend: | 9.5%
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| Price: | $24.75
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| Liquidation preference: | $25.00
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| Call: | On or after Aug. 25, 2025 at par; prior to that, within 90 days after a delisting event at par or within 120 days after a change of control at par
|
| Pricing date: | Dec. 16
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| Settlement date: | Dec. 18
|
| Distribution: | SEC registered
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| Listing: | Nasdaq: OTRKP
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