FARO Technologies talks $60 million five-year convertibles with fixed coupon of 5.5%, up 20%

By Abigail W. Adams

Portland, Me., Jan. 19 – FARO Technologies Inc. plans to price $60 million of five-year convertible notes after the market close on Thursday with price talk for a fixed coupon of 5.5% and a fixed conversion premium of 20%, according to a market source.

J.P. Morgan Securities LLC is sole bookrunner for the Rule 144A deal, which carries a greenshoe of $15 million.

The notes are non-callable until Feb. 5, 2026 and then subject to a 130% hurdle.

They are putable upon a fundamental change. There is dividend protection.

The notes will be settled in cash, shares or a combination of both at the company’s option.

Net proceeds will be used for working capital and general corporate purposes.

FARO is a Lake Mary, Fla.-based 3D measurement, imaging, and realization technology company.

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