By Abigail W. Adams
Portland, Me., May 9 – TransMedics Group Inc. priced an upsized $400 million of five-year convertible notes after the market close on Monday at par with a coupon of 1.5% and an initial conversion premium of 32.5%, according to a company news release.
Pricing came richer than talk for a coupon of 1.75% to 2.25% and at the rich end of talk for an initial conversion premium of 27.5% to 32.5%, according to a market source.
Morgan Stanley & Co. LLC (lead left) and J.P. Morgan Securities LLC were bookrunners for the Rule 144A offering, which carries an upsized greenshoe of $60 million.
The initial size of the offering was $300 million with a greenshoe of $45 million.
The notes are non-callable until June 8, 2026 and then subject to a 130% hurdle.
In connection with the offering, the company entered into capped call transactions with a cap price $141.88, which represents a 100% premium over the last reported sales price of stock.
Net proceeds are expected to be $387.2 million or will be $445.4 million if the greenshoe is exercised in full.
Approximately $45.3 million of net proceeds will be used to cover the cost of the call spread.
Remaining proceeds will be used to expand its logistics network through partnerships and acquisitions and for general corporate purposes.
TransMedics is an Andover, Mass.-based medical technology company.
| Issuer: | TransMedics Group Inc.
|
| Amount: | $400 million
|
| Greenshoe: | $60 million
|
| Issue: | Convertible senior notes
|
| Maturity: | June 1, 2028
|
| Bookrunners: | Morgan Stanley & Co. LLC (lead left) and J.P. Morgan Securities LLC
|
| Coupon: | 1.5%
|
| Price: | Par
|
| Yield: | 1.5%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $94.00
|
| Conversion rate: | 10.6388
|
| Call options: | Non-callable until June 8, 2026 and then subject to a 130% hurdle
|
| Pricing date: | May 8
|
| Settlement date: | May 11
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 1.75% to 2.25% and initial conversion premium of 27.5% to 32.5%
|
| Stock symbol: | Nasdaq: TMDX
|
| Stock price: | $70.94 at market close May 8
|
| Market capitalization: | $2.31 billion
|
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