By Kenneth Lim
Boston, Feb. 6 - Invacare Corp. priced $125 million of 20-year senior subordinated convertible notes within talk and earlier than expected on Monday after the market closed at a coupon of 4.125% and an initial conversion premium of 22.5%.
The convertibles were talked at a coupon of 3.875% to 4.375% and an initial conversion premium of 20% to 25%. They were offered at par.
Pricing was originally slated for Tuesday after the market closed.
There is an over-allotment option for a further $10 million.
Bank of America was the bookrunner for the offering, which is sold in the United States under Rule 144A and under Regulation S overseas.
There was a separate offering of senior notes due 2015.
The convertibles are non-callable for the first five years and may be called until the 10th year subject to a hurdle at 130% of the conversion price.
The convertibles may be put in years 10 and 15.
The convertibles have a contingent conversion trigger at 130% of the conversion price.
There is full dividend and takeover protection for the convertibles.
Invacare, an Elyria, Ohio-based maker of non-acute health care products, expects to use the proceeds of the convertible deal and other debt to refinance substantially all of its existing debt.
| Issuer: | Invacare Corp.
|
| Issue: | Convertible senior subordinated notes
|
| Bookrunner: | Bank of America
|
| Amount: | $125 million
|
| Greenshoe: | $10 million
|
| Maturity: | Feb. 1, 2027
|
| Coupon: | 4.125%
|
| Price: | Par
|
| Yield: | 4.125%
|
| Conversion premium: | 22.5%
|
| Conversion price: | $24.79
|
| Conversion ratio: | 40.3323
|
| Contingent conversion: | 130%
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before Feb. 6, 2012, callable between Feb. 6, 2012 and Feb. 1, 2017 subject to hurdle at 130% of conversion price
|
| Puts: | Feb. 1, 2017; Feb. 1, 2022
|
| Price talk: | 3.875%-4.375%, up 20%-25%
|
| Pricing date: | Feb. 5, after the close
|
| Settlement date: | Feb. 12
|
| Distribution: | Rule 144A
|
© 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.
