Healthways heralds offering of cash convertible senior notes due 2018

By Stephanie N. Rotondo

Phoenix, July 1 - Healthways Inc. is planning a private offering of cash convertible senior notes due July 1, 2018, the company said in a press release on Monday.

The Rule 144A offering will have a $15 million over-allotment option.

Interest on the notes will be payable semiannually on the first of January and July, beginning Jan. 14.

In connection with pricing of the offering, the company will enter into privately negotiated cash convertible note hedge transactions with one or more of the initial purchasers or their affiliates. The hedge is expected to offset cash payments due upon conversion.

Holders who participate in the hedge transaction will receive warrants for common stock.

Proceeds from the sale will be used to pay the costs of the hedge transactions and to reduce outstanding debt. Any remaining funds will be used for general corporate purposes, including acquisitions, strategic partnerships and expansion strategies.

Healthways is a Nashville-based provider of well-being improvement solutions.

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