NeoGenomics talks $250 million seven-year convertible notes to yield 0.25%-0.75%, up 30%-35%

By Abigail W. Adams

Portland, Me., Jan. 5 – NeoGenomics Inc. plans to price $250 million of seven-year convertible notes after the market close on Wednesday with price talk for a coupon of 0.25% to 0.75% and an initial conversion premium of 30% to 35%, according to a market source.

BofA Securities Inc., Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC are bookrunners for the registered offering, which carries a greenshoe of $37.5 million.

The notes are contingently convertible until Sept. 15, 2027.

They are non-callable for four years and then subject to a 130% hurdle.

There is dividend and takeover protection.

In connection with the offering, the company will enter into capped call transactions.

The company is also pricing a concurrent secondary offering of $200 million common shares. The secondary offering carries a greenshoe of $30 million.

Proceeds will be used to cover the cost of the call spread and for general corporate purposes.

NeoGenomics is a Fort Myers, Fla.-based cancer genetics testing company.

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