Published on 9/30/2021 in the Prospect News High Yield Daily and Prospect News Preferred Stock Daily.
New Issue: LifeMD prices $35 million 8.875% cumulative perpetual preferreds
By Marisa Wong
Los Angeles, Sept. 30 – LifeMD, Inc. priced 1.4 million shares of 8.875% $25-par series A cumulative perpetual preferred stock for a liquidation preference of $35 million, according to an FWP filing with the Securities and Exchange Commission.
There is a 30-day greenshoe for $5.25 million, or 210,000 shares, of the preferreds.
B. Riley Securities, Inc., Ladenburg Thalmann & Co. Inc., Colliers Securities LLC and EF Hutton are the bookrunners.
As previously announced, proceeds will be used to fund a segregated dividend account and to repay a portion of some debt, and the remaining net proceeds will be used for working capital and general corporate purposes, including, but not limited to, new patient customer acquisition expenses and capital expenditures.
Based in New York, LifeMD is a direct-to-patient telehealth company, offering cash-pay virtual medical care across all 50 states.
| Issuer: | LifeMD, Inc.
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| Issue: | Series A cumulative perpetual preferred stock
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| Amount: | $35 million
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| Greenshoe: | $5.25 million
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| Maturity: | Perpetual
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| Bookrunners: | B. Riley Securities, Inc., Ladenburg Thalmann & Co. Inc., Colliers Securities LLC and EF Hutton
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| Co-managers: | Aegis Capital Corp., Benchmark Co., LLC, Boenning & Scattergood, Inc., Chapin Davis Investments and B.C. Ziegler & Co.
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| Dividend: | 8.875%
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| Price: | Par of $25.00
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| Yield: | 8.875%
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| Call option: | At $25.73 on or after Oct. 15, 2022 and prior to Oct. 15, 2023, at $25.50 on or after Oct. 15, 2023 and prior to Oct. 15, 2024, at $25.25 on or after Oct. 15, 2024 and prior to Oct. 15, 2025 and at par of $25 on or after Oct. 15, 2025; at par within 120 days of a change of control or within 90 days of delisting event
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| Pricing date: | Sept. 30
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| Settlement date: | Oct. 4
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| Listing: | Nasdaq: LFMDP
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| Cusip: | 53216B203
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