NovaMed talks $52.5 million five-year convertibles at 0.5% to 1%, up 15% to 20%, to price Thursday

By Kenneth Lim

Boston, June 20 - NovaMed Inc. plans to price $52.5 million of five-year convertible senior subordinated notes on Thursday after the market closes, talked at a coupon of 0.5% to 1% and an initial conversion premium of 15% to 20%.

The convertibles will be offered at par.

There is an over-allotment option for a further $7.5 million.

Deutsche Bank is the bookrunner of the registered offering.

The convertibles will be non-callable and may not be put.

There will be a contingent conversion trigger at 120% of the conversion price.

The convertibles will have dividend and takeover protection.

There will be a net-share settlement feature.

NovaMed, a Chicago-based health care services company that operates surgical facilities, said the proceeds of the deal will be used to fund convertible note hedge and warrant transactions and to help repay an outstanding $125 million of debt.

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