By Angela McDaniels
Tacoma, Wash., May 19 – HeartWare International, Inc. issued $202.3 million principal amount of 1.75% convertible senior notes due 2021 on May 13, according to an 8-K filing with the Securities and Exchange Commission.
The company priced $148 million of the convertibles on May 7 with a 30.5% initial conversion premium, as previously reported. It later arranged additional investors for the issue and released updated information in the SEC filing on Tuesday.
In total, the company issued $84.2 million the 1.75% convertibles for cash and $118.2 million of the 1.75% convertibles in exchange for $101.3 million of its 3.5% convertible senior notes due 2017.
The new money convertibles were issued at purchase price of 95.22.
The exchanges were made under privately negotiated agreements at a rate of about $1,167 principal amount of new convertibles for each $1,000 principal amount of old convertibles exchanged.
The amount of 3.5% convertibles exchanged represents about 70% of the previously outstanding amount. About $42.5 million remain outstanding.
The new convertibles 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: | $202.3 million
|
| Maturity: | Dec. 15, 2021
|
| Coupon: | 1.75%
|
| Price: | 95.22
|
| 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 15
|
| 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
|
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