Invacare greenshoe exercised in full, pushing 20-year convertibles issue to $135 million

By Jennifer Chiou

New York, Feb. 13 - Invacare Corp. sold an additional $10 million of convertible senior subordinated debentures due 2027 after underwriters fully exercised the over-allotment option, augmenting its offering to $135 million, according to an 8-K filing with the Securities and Exchange Commission.

After the close Feb. 5, the company priced $125 million of the 20-year convertible notes within talk at a coupon of 4.125% and an initial conversion premium of 22.5%.

As previously reported, 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 Feb. 6 after the market closed. Closing of the sale occurred on Feb. 12 for net proceeds of $132.3 million.

Bank of America was the bookrunner for the offering, which was sold in the United States under Rule 144A and under Regulation S overseas.

There was a separate offering of $175 million 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.

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