By Abigail W. Adams
Portland, Me., May 13 – Tandem Diabetes Care Inc. priced $250 million of five-year convertible notes after the market close on Tuesday at par at the cheap end of talk with a coupon of 1.5% and an initial conversion premium of 30%, according to a company news release.
Price talk was for a coupon of 1% to 1.5% and an initial conversion premium of 30% to 35%, according to a market source.
Goldman Sachs & Co. LLC (lead left) and Barclays are active bookrunners on the Rule 144A offering, which carries a greenshoe of $37.5 million.
The notes are non-callable until May 6, 2023 and then subject to a 130% hurdle above the conversion price.
They are contingently convertible until Nov. 1, 2024.
The notes are putable upon a fundamental change. There is dividend protection.
In connection with the pricing of the notes, the company entered into capped call transactions with a cap price of $173.18, which represents a premium of 100% over the last reported sales price of stock.
Net proceeds are expected to be $242.5 million or $278.9 million if the greenshoe is exercised in full.
Approximately $29.6 million of the net proceeds will be used to cover the cost of the call spread with the remaining amount to be used for general corporate purposes.
Tandem Diabetes is a San Diego-based medical device company.
| Issuer: | Tandem Diabetes Care Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $250 million
|
| Greenshoe: | $37.5 million
|
| Maturity: | May 1, 2025
|
| Bookrunners: | Goldman Sachs & Co. LLC (lead left) and Barclays
|
| Coupon: | 1.5%
|
| Price: | Par
|
| Yield: | 1.5%
|
| Conversion premium: | 30%
|
| Conversion price: | $112.57
|
| Conversion rate: | 8.8836
|
| Call options: | Non-callable until May 6, 2023 and then subject to a 130% hurdle above the conversion price
|
| Put options: | Upon a fundamental change
|
| Pricing date: | May 12
|
| Settlement date: | May 15
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 1% to 1.5% and initial conversion premium of 30% to 35%
|
| Stock symbol: | Nasdaq: TNDM
|
| Stock price: | $86.59 at market close May 12
|
| Market capitalization: | $5.22 billion
|
© 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.
