ConMed talks $275 million five-year convertibles at 2.875%-3.375%, up 22.5%-27.5%

By Abigail W. Adams

Portland, Me., Jan. 23 – ConMed Corp. plans to price $275 million of five-year convertible notes after the market close on Thursday with price talk for a coupon of 2.875% to 3.375% and an initial conversion premium of 22.5% to 27.5%, according to a market source.

J.P. Morgan Securities LLC (lead left) and Barclays are active bookrunners for the Rule 144A deal, which carries a greenshoe of $41.25 million.

BofA Merrill Lynch and Wells Fargo Securities LLC are passive bookrunners.

The notes are contingently convertible until Nov. 1, 2023. They are non-callable and have no put features. There is dividend and takeover protection.

In connection with the pricing of the notes, ConMed will enter into convertible note hedge and warrant transactions.

Proceeds will be used to cover the cost of the call spread and to fund the acquisition of Buffalo Filter LLC and Palmerton Holdings, Inc.

ConMed is a Utica, N.Y.-based medical technology company focused on surgical devices for minimally invasive procedures.

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