By Stephanie N. Rotondo
Seattle, June 9 – Invacare Corp. sold $105 million of five-year convertible senior notes at par to yield 4.5% with an initial conversion premium of 32.5%, the company said in a press release.
The deal came at the rich end of the 4.5% to 5% yield talk as well as at the rich end of the 27.5% to 32.5% premium talk.
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 initial conversion rate is 61.6095 shares per each $1,000 of notes, equal to an initial conversion price of $16.23 a share.
The notes are contingently convertible prior to Dec. 1, 2021 but are convertible at any time after that date.
The issue is non-callable. Holders can put the issue upon a fundamental change.
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.
| Issuer: | Invacare Corp.
|
| Securities: | Convertible senior notes
|
| Amount: | $105 million
|
| Greenshoe: | $15 million
|
| Maturity: | June 1, 2022
|
| Bookrunner: | Goldman Sachs & Co.
|
| Coupon: | 4.5%
|
| Price: | Par of $1,000
|
| Yield: | 4.5%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $16.23
|
| Conversion rate: | 61.6095 shares
|
| Call options: | None
|
| Put options: | Upon a fundamental change
|
| Pricing date: | June 8
|
| Settlement date: | June 14
|
| Distribution: | Rule 144A
|
| Talk: | 4.5% to 5% yield, up 27.5% to 32.5%
|
| Stock symbol: | NYSE: IVC
|
| Stock price: | $12.15 as of June 8 close
|
| Market capitalization: | $389.29 million
|
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