By Rebecca Melvin
New York, Dec. 16 – NantHealth Inc. priced $100 million of five-year convertible senior notes at par to yield 5.5% with an initial conversion premium of 25% on Thursday, according to a company news release.
The Rule 144A and Regulation S deal came at the cheap end of talk for a 5% to 5.5% coupon and an initial conversion premium of 25% to 30%.
The deal priced via J.P. Morgan Securities LLC and Jefferies LLC as bookrunners and has an over-allotment option for an additional $15 million. The deal is slated to close Dec. 21.
Entities affiliated with Dr. Patrick Soon-Shiong, NantHealth’s chairman and chief executive officer, have indicated interest in purchasing up to $20 million of the convertibles in a separate private placement.
Conversions will be settled with common stock, cash or a combination thereof. There is a contingent conversion feature if the stock hits a 120% price hurdle.
Proceeds will be used for general corporate purposes, including commercializing new solutions and product extensions and potentially pursuing targeted acquisitions.
NantHealth is a Culver City, Calif.-based company focused on developing and marketing a range of health care solutions.
| Issuer: | NantHealth Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $100 million
|
| Greenshoe: | $15 million
|
| Maturity: | Dec. 15, 2021
|
| Concurrent offering: | Private placement of $20 million of the notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Jefferies LLC
|
| Coupon: | 5.5%
|
| Price: | Par
|
| Yield: | 5.5%
|
| Conversion premium: | 25%
|
| Conversion price: | $12.14
|
| Conversion rate: | 82.3893
|
| Contingent conversion: | Yes, at 120%
|
| Call feature: | Non-callable
|
| Price talk: | 5%-5.5%, up 25%-30%
|
| Pricing date: | Dec. 15
|
| Settlement date: | Dec. 21
|
| Stock symbol: | NYSE: NH
|
| Stock price: | $9.71 at close Dec. 15
|
| Market capitalization: | $1.18 billion
|
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