By Abigail W. Adams
Portland, Me., Jan. 20 – FARO Technologies Inc. priced $60 million of five-year convertible notes after the market close on Thursday at par with a coupon of 5.5% and an initial conversion premium of 20%, according to a company news release.
Pricing came in line with 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 was 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.
| Issuer: | FARO Technologies Inc.
|
| Amount: | $60 million
|
| Greenshoe: | $15 million
|
| Issue: | Convertible senior notes
|
| Maturity: | Feb. 1, 2028
|
| Bookrunner: | J.P. Morgan Securities LLC
|
| Coupon: | 5.5%
|
| Price: | Par
|
| Yield: | 5.5%
|
| Conversion premium: | 20%
|
| Conversion price: | $42.36
|
| Conversion rate: | 23.6072
|
| Call options: | Non-callable until Feb. 5, 2026 and then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | Jan. 19
|
| Settlement date: | Jan. 24
|
| Distribution: | Rule 144A
|
| Talk: | Fixed coupon of 5.5% and fixed conversion premium of 20%
|
| Stock symbol: | Nasdaq: FARO
|
| Stock price: | $35.20 at market close Jan. 19
|
| Market capitalization: | $662.93 million
|
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