By Kenneth Lim
Boston, Sept. 13 - PolyMedica Corp. on Wednesday priced $180 million of five-year convertible subordinated notes at the rich end of talk, with a coupon of 1% and an initial conversion premium of 14%. The deal amount includes a $30 million greenshoe option that was immediately exercised.
The notes were offered at par. Price talk guided for a coupon of 1% to 1.5% and an initial conversion premium of 10% to 14%.
Bank of America and Deutsche Bank were the bookrunners for the Rule 144A offering.
The convertibles are non-callable for life, and there are no puts.
There is a contingent conversion hurdle at 120% of the conversion price.
The notes will have dividend and takeover protection.
PolyMedica, a Wakefield, Mass.-based provider of healthcare products and services for patients of chronic diseases, said it will use the proceeds of the offering to concurrently buy back about $29.6 million of its common stock from convertible purchasers, representing the 705,000 shares remaining in its current stock repurchase program. The proceeds will also be used to fund convertible note hedge and warrant transactions, and to pay off about $118.6 million of outstanding bank debt.
| Issuer: | PolyMedica Corp.
|
| Issue: | Convertible subordinated notes
|
| Bookrunner: | Bank of America and Deutsche Bank
|
| Amount: | $150 million, excluding greenshoe
|
| Greenshoe: | $30 million, immediately exercised
|
| Maturity: | September 2011
|
| Coupon: | 1%
|
| Price: | Par
|
| Yield: | 1%
|
| Conversion premium: | 14%
|
| Conversion price: | $47.9028
|
| Conversion ratio: | 20.8756
|
| Contingent conversion: | 120%
|
| Net share settlement: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable for life
|
| Puts: | None
|
| Price talk: | 1%-1.5%, up 10%-14%
|
| Pricing date: | Sept. 13 after the close
|
| Distribution: | Rule 144A
|
© 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.
