By Abigail W. Adams
Portland, Me., July 18 – Senseonics Holdings Inc. priced an upsized $82 million of 5.25% convertible notes due 2025 prior to the market open on Thursday with an initial conversion premium of 20%, according to a company news release.
Jefferies & Co. was the bookrunner for the Rule 144A offering, according to a market source.
The initial size of the deal was $80 million.
The notes are callable subject to a 150% hurdle or if a registration statement for the resale of shares of common stock issuable upon conversion is effective and available for use, according to the news release.
The notes are putable upon a fundamental change.
Concurrently with the convertible notes offering, Senseonics priced a $25 million common stock offering at $1.10 per share.
Pricing of the convertible notes offering was contingent on the completion of the common stock offering and the solicitation of consent from the holders of the company’s 5.25% convertible notes due 2023 to eliminate a covenant restricting the incurrence of additional debt.
Net proceeds are expected to be $77 million. Proceeds will be used to repurchase approximately $37 million of the principal amount of the company’s 5.25% convertible notes due 2023 in privately negotiated transactions, including holders that entered into the consent solicitation support agreement. Remaining proceeds will be used for general corporate purposes and working capital.
Senseonics Holdings is a Germantown, Md.-based medical technology company.
| Issuer: | Senseonics Holdings Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $82 million
|
| Maturity: | Jan. 15, 2025
|
| Bookrunner: | Jefferies & Co.
|
| Coupon: | 5.25%
|
| Conversion premium: | 20%
|
| Conversion price: | $1.32
|
| Conversion rate: | 757.5758
|
| Call options: | Subject to a 150% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | July 18
|
| Settlement date: | July 24
|
| Distribution: | Rule 144A
|
| Concurrent offering: | $25 million common stock offering
|
| Stock symbol: | NYSE: SENS
|
| Stock price: | $1.10 in concurrent offering
|
| Market capitalization: | $208.87 million
|
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