By Cristal Cody
Tupelo, Miss., April 4 – Medartis Holding AG announced Thursday that it priced CHF 115.8 million of 3% senior unsecured guaranteed convertible bonds due 2031, according to a notice.
The bonds were issued by subsidiary Medartis International Finance SAS and unconditionally and irrevocably guaranteed by the parent company.
Advanced subscription rights for existing shareholders were excluded in the offering.
The bonds are convertible into newly issued and/or existing registered shares of the company.
The initial conversion price of the bonds has been set at CHF 100.725, representing a premium of 27.5% over the price per share in the concurrent delta placement.
Price talk was for a coupon of 2.75% to 3.25% and an initial conversion premium of 25% to 30%.
The bonds may be redeemed at par starting May 2, 2029, subject to a 130% hurdle.
BofA Securities Europe SA was the sole global coordinator. Zurcher Kantonalbank joined as a joint bookrunner.
Medartis said the joint bookrunners have conducted a simultaneous placement of existing shares of the company in order to facilitate hedging the market risk for certain subscribers of the bonds. Medartis said it will not receive any proceeds from the placement of those shares.
An application will be made for the bonds to be admitted to trading on the Open Market of the Frankfurt Stock Exchange and such admission to trading is expected no later than three months after the settlement date.
Proceeds from the deal will be used for general funding purposes including acquisitions in Medartis’ core business.
Medartis is a specialized orthopaedic company for head and extremity surgery based in Basel, Switzerland.
| Issuer: | Medartis International Finance SAS
|
| Guarantor: | Medartis Holding AG
|
| Amount: | CHF 115.8 million
|
| Issue: | Convertible senior guaranteed notes
|
| Maturity: | April 11, 2031
|
| Bookrunners: | BofA Securities Europe SA and Zurcher Kantonalbank
|
| Coupon: | 3%
|
| Price: | Par
|
| Yield: | 3%
|
| Conversion premium: | 27.5%
|
| Conversion price: | CHF 100.725
|
| Call features: | At par starting May 2, 2029, subject to 130% hurdle
|
| Puts: | At par on fifth anniversary
|
| Trade date: | April 4
|
| Settlement date: | April 11
|
| Distribution: | Regulation S
|
| Price talk: | Coupon of 2.75% to 3.25%, initial conversion premium of 25% to 30%
|
| Stock symbol: | SWX: MED
|
| Stock price: | CHF 87.3 on April 3
|
| Market capitalization: | CHF 1 billion
|
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