By Abigail W. Adams
Portland, Me., April 2 – Nevro Corp. priced $165 million of five-year convertible notes prior to the market open on Thursday at par with a coupon of 2.75% and an initial conversion premium of 25%, according to a market source.
Pricing came at the rich end of talk for a coupon of 2.75% to 3.25% and the midpoint of talk for an initial conversion premium of 22.5% to 27.5%, according to a market source.
Morgan Stanley & Co. LLC was the bookrunner for the registered offering, which carries a greenshoe of $24.75 million.
The notes are non-callable. They are putable upon a fundamental change.
The notes are contingently convertible until Oct. 1, 2024.
The securities will be settled in cash, shares or a combination of both at the company’s option.
In connection with the pricing of the notes, the company entered into convertible note hedge and warrant transactions.
The strike price on the warrant transactions will be $147.00, a 75% premium over the price of stock in the concurrent secondary offering.
Concurrently with the convertible notes, the company priced a secondary offering of $136.5 million, or 1,625,000 shares of common stock at $84.00 a share.
The secondary offering carries a greenshoe of 243,750 shares.
Proceeds will be used to cover the cost of the hedge transactions, to repurchase and retire its outstanding 1.75% convertible notes due 2021 in privately negotiated transactions and for general corporate purposes.
Nevro is a Redwood City, Calif.-based global medical device company.
| Issuer: | Nevro Corp.
|
| Securities: | Convertible senior notes
|
| Amount: | $165 million
|
| Greenshoe: | $24.75 million
|
| Maturity: | April 1, 2025
|
| Bookrunner: | Morgan Stanley & Co. LLC
|
| Coupon: | 2.75%
|
| Price: | Par
|
| Yield: | 2.75%
|
| Conversion premium: | 25%
|
| Conversion price: | $105
|
| Conversion rate: | 9.5238
|
| Call options: | Non-callable
|
| Put options: | Upon a fundamental change
|
| Pricing date: | April 2
|
| Settlement date: | April 6
|
| Distribution: | Registered
|
| Talk: | Coupon of 2.75% to 3.25% and initial conversion premium of 22.5% to 27.5%
|
| Stock symbol: | NYSE: NVRO
|
| Stock price: | $84.00 in concurrent offering
|
| Market capitalization: | $8.89 billion
|
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