Invacare to sell $100 million convertibles due 2022 to yield 4.5%-5%, up 27.5%-32.5%

By Stephanie N. Rotondo

Seattle, June 7 – Invacare Corp. is offering $100 million of five-year convertible senior notes with price talk at a 4.5% to 5% yield and an initial conversion premium of 27.5% to 32.5%, according to a market source.

Goldman Sachs & Co. is the bookrunner on the Rule 144A deal.

There is a $15 million 13-day over-allotment option.

Conversions will be settled in cash until the company receives shareholder approval to issue new stock.

The notes are contingently convertible prior to Dec. 1, 2021, but are convertible at any time after that date.

The issue is non-callable.

In connection with the deal, Invacare expects to enter into convertible hedge transactions with Goldman Sachs, as well as separate, privately negotiated warrant transactions.

Proceeds will be used, in part, to cover the hedging transactions. The remaining funds will be used for working capital and general corporate purposes, which may include funding portions of the company’s ongoing turnaround and addressing potential risks and contingencies.

Invacare is an Elyria, Ohio-based manufacturer and distributor of medical equipment used in non-acute care settings.

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