By Rebecca Melvin
New York, May 7 – HeartWare International Inc. priced $148 million of 6.5-year convertible bonds with a 1.75% coupon and 30.5% initial conversion premium on Wednesday, according to a news release.
Part of the deal, or $79 million of it, was sold to holders of the company’s 3.5% convertibles due 2017. The company exchanged $68 million of the 2017 notes, or about 47% of the issue outstanding, for $79 million of the new notes.
In addition, the company sold to a limited number of institutional buyers under Rule 144A an additional $69 million of the 2021 notes for proceeds of about $66 million. The bonds were offered at a discounted price of 95.22.
Upon completion of the exchange, about $76 million of the 2017 notes will remain outstanding.
The new notes are non-callable until June 19, 2019 and then are provisionally callable if shares exceed 130% of the conversion price for a specified period.
J. Wood Capital Advisors LLC arranged the new issue and exchange offer.
HeartWare is a medical device company located in Framingham, Mass., and Sydney, Australia.
| Issuer: | HeartWare International Inc.
|
| Issue: | Convertible senior bonds
|
| Amount: | $148 million
|
| Maturity: | Dec. 15, 2021
|
| Coupon: | 1.75%
|
| Price: | 95.22, discount to par
|
| Conversion premium: | 30.5%
|
| Conversion price: | $100.00
|
| Call: | Non-callable until June 19, 2019, then provisionally callable at a 130% hurdle
|
| Pricing date: | May 6
|
| Settlement date: | May 13
|
| Arranger: | J. Wood Capital Advisors LLC
|
| Distribution: | Rule 144A and privately negotiated
|
| Stock listing: | Nasdaq: HTWR
|
| Stock reference price: | $76.60, as of close May 6
|
| Market capitalization: | $1.28 billion
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
