By Rebecca Melvin
New York, March 4 - NuVasive Inc. priced $200 million of five-year convertible senior notes on Monday after the close at par to yield 2.25% with an initial conversion premium of 27.5%, according to a company news release.
The notes priced at the rich end of talk, which was for a coupon of 2.25% to 2.75% and an initial conversion premium of 22.5% to 27.5%.
J.P. Morgan Securities Inc. and Goldman Sachs were bookrunners of the Rule 144A deal.
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.
| Issuer: | NuVasive Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $200 million
|
| Greenshoe: | $30 million
|
| Maturity: | 2013
|
| Coupon: | 2.25%
|
| Price: | Par
|
| Yield: | 2.25%
|
| Conversion premium: | 27.5%
|
| Conversion price: | $44.74
|
| Conversion ratio: | 22.3515
|
| Call feature: | Non callable
|
| Puts: | No puts
|
| Bookrunners: | J.P. Morgan Securities Inc. and Goldman Sachs
|
| Pricing date: | March 3
|
| Settlement date: | March 7
|
| Distribution: | Rule 144A
|
| Price talk: | 2.25% to 2.75%, up 22.5% to 27.5%
|
| Stock symbol: | Nasdaq: NUVA
|
| Stock price: | $35.09 at close March 3
|
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