Nuance greenshoe fully exercised, lifting convertibles to $690 million

By Devika Patel

Knoxville, Tenn., Oct. 24 - Underwriters for Nuance Communications Inc.'s offering of 2.75% 20-year convertible senior notes exercised their over-allotment option in full for $90 million more of the convertibles, increasing the size of the issue to $690 million, the company said in an 8-K filed Monday with the Securities and Exchange Commission.

As previously reported, the company sold the notes at par on Oct. 19, in a Rule 144A offering, via underwriter Morgan Stanley & Co. LLC.

The convertibles have an initial conversion premium of 37.5% and an initial $32.30 conversion price, which equals a conversion ratio of 30.961.

The notes are putable on Nov. 1 of 2017, 2021 and 2026 at par plus accrued and unpaid interest. Nuance will also be required to repurchase the notes "upon the occurrence of certain fundamental changes."

The notes are callable at par on or after Nov. 6, 2017.

A portion of the proceeds will be used to repurchase up to $200 million of the company's common stock, as recently approved by its board of directors. Additional proceeds will be used for potential acquisitions and other strategic transactions, as well as for general corporate purposes, including working capital and capital expenditures.

Nuance is a Burlington, Mass.-based provider of voice and language solutions for businesses and consumers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.