By Abigail W. Adams
Portland, Me., June 19 – CryoLife Inc. priced $100 million of five-year convertible notes after the market close on Thursday at par at the cheap end of talk with a coupon of 4.25% and an initial conversion premium of 35%, according to a company news release.
Price talk was for a coupon of 3.75% to 4.25% and an initial conversion premium of 35% to 40%, according to a market source.
Morgan Stanley & Co. LLC was the bookrunner for the Rule 144A offering, which carries a greenshoe of $15 million.
The notes are non-callable until July 5, 2023 and then subject to a 130% hurdle with a make-whole.
Net proceeds are expected to be $96.5 million or $111.1 million if the greenshoe is exercised in full.
Proceeds will be used to repay $30 million under the company’s revolving credit facility and for general corporate purposes.
CryoLife is an Atlanta-based medical device company.
| Issuer: | CryoLife Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $100 million
|
| Greenshoe: | $15 million
|
| Maturity: | July 1, 2025
|
| Bookrunner: | Morgan Stanley & Co. LLC
|
| Coupon: | 4.25%
|
| Price: | Par
|
| Yield: | 4.25%
|
| Conversion premium: | 35%
|
| Conversion price: | $23.46
|
| Conversion rate: | 42.6203
|
| Call options: | Non-callable until July 5, 2023 and then subject to a 130% hurdle
|
| Put options: | None
|
| Pricing date: | June 18
|
| Settlement date: | June 23
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 3.75% to 4.25% and initial conversion premium of 35% to 40%
|
| Stock symbol: | NYSE: CRY
|
| Stock price: | $17.38 at market close June 18
|
| Market capitalization: | $655.92 million
|
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