NuVasive $200 million five-year convertibles talked at 2.25%-2.75% coupon, up 22.5%-27.5%

By Rebecca Melvin

New York, March 3 - NuVasive Inc. plans to price about $200 million of five-year convertible bonds talked at a coupon of 2.25% to 2.75% and an initial conversion premium of 22.5% to 27.5%, according to a market source.

JPMorgan and Goldman Sachs are bookrunners of the Rule 144A deal, which is expected to price Monday after the close.

There is an over-allotment option of up to $30 million.

NuVasive intends to use proceeds from the senior notes offering for general corporate purposes, including potential strategic acquisitions.

The company will also enter into convertible note hedge transactions intended to increase the effective conversion price of the notes and thereby reduce stock dilution upon potential future conversion of the notes.

The company also intends to enter into separate warrant transactions with counterparties, which would result in additional proceeds to the company and would partially offset the cost of the convertible note hedge transactions.

San Diego-based NuVasive is a medical device company focused on developing products for minimally disruptive surgical treatments for the spine.

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