Nevro greenshoe exercise raises 1.75% convertibles to $172.5 million

By Angela McDaniels

Tacoma, Wash., June 13 – The underwriters of Nevro Corp.’s 1.75% five-year convertible senior notes exercised their $22.5 million greenshoe in full, increasing the size of the offering to $172.5 million from $150 million.

As previously reported, the company priced the convertibles on June 7 at par to yield 1.75% with an initial conversion premium of 32.5%.

The registered deal was upsized from an initially talked $125 million, and the greenshoe was upsized from $18.75 million.

Pricing came at the rich end of talk for a 1.75% to 2.25% coupon and 27.5% to 32.5% premium.

J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were joint bookrunners.

Proceeds will be used to fund the net cost of a call spread that boosts the initial conversion premium from the issuer’s perspective to 75% and to repay an existing term loan agreement, including associated closing and repayment fees with Capital Royalty Partners and certain affiliates. Any remaining proceeds are for general corporate purposes.

Redwood City, Calif.-based Nevro is a medical device company focused on chronic pain treatments.

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