By Abigail W. Adams
Portland, Me., Oct. 20 – Enovis Corp. priced $400 million of five-year convertible notes after the market close on Thursday at par at the midpoint of talk with a coupon of 3.875% and an initial conversion premium of 30%, according to a market source.
Price talk was for a coupon of 3.625% to 4.125% and an initial conversion premium of 27.5% to 32.5%.
J.P. Morgan Securities LLC and UBS Securities LLC were bookrunners for the Rule 144A offering, which carries a greenshoe of $60 million.
The notes are non-callable.
They are putable upon a fundamental change.
They will be settled in cash up to the principal amount with any remaining to be covered in cash, shares or a combination of both.
The notes will be redeemed at 101 plus accrued interest if the company’s acquisition of LimaCorporate SpA is not consummated by June 30, 2024.
In connection with the offering, the company entered into capped call transactions with a cap price of $89.72, which represents a premium of 100% over the last reported sales price of stock.
Net proceeds are expected to be $386.9 million or will be $445.1 million if the greenshoe is exercised in full.
Approximately $53.9 million of net proceeds will be used to cover the call spread with the remaining amount, together with borrowings under a new term loan and cash on hand, to be used to fund the cash purchase price of the acquisition of LimaCorporate.
Enovis is a Wilmington, Del.-based medical technology company.
| Issuer: | Enovis Corp.
|
| Amount: | $400 million
|
| Greenshoe: | $60 million
|
| Issue: | Convertible senior notes
|
| Maturity: | Oct. 15, 2028
|
| Bookrunners: | UBS Securities LLC and J.P. Morgan Securities LLC
|
| Coupon: | 3.875%
|
| Price: | Par
|
| Yield: | 3.875%
|
| Conversion premium: | 30%
|
| Conversion price: | $58.32
|
| Conversion rate: | 17.1474
|
| Call options: | Non-callable
|
| Put options: | Upon a fundamental change
|
| Pricing date: | Oct. 19
|
| Settlement date: | Oct. 24
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 3.625% to 4.125% and initial conversion premium of 27.5% to 32.5%
|
| Stock symbol: | NYSE: ENOV
|
| Stock price: | $44.86 at market close Oct. 19
|
| Market capitalization: | $2.45 billion
|
|
|
© 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.
