By Rebecca Melvin
New York, June 21 – Teladoc Inc. priced an upsized $240 million of 5.5-year convertible notes after the market close on Wednesday to yield 3% with an initial conversion premium of 30%, according to a company release.
The deal size was initially talked at $200 million. There is a greenshoe option that was upsized to $35 million from $30 million.
Jefferies & Co. is bookrunner of the Rule 144A notes.
Pricing came at the rich end of the 3% to 3.5% coupon talk and at the midpoint of the 27.5% to 32.5% premium talk.
The notes are non-callable until Dec. 22, 2020 and are provisionally callable after that if Teladoc shares exceed 130% of the conversion price for 20 out of 30 trading days.
Settlements of conversions may be in cash, shares or a combination of cash and shares.
Proceeds are expected to be used to finance a portion of the company’s previously announced acquisition of Best Doctors Holdings Inc., to refinance existing debt and to pay related fees and expenses. Any remaining proceeds will be used for working capital purposes or other general corporate purposes.
Based in Purchase, N.Y., Teladoc uses telephone and videoconferencing to provide on-demand, remote medical care.
| Issuer: | Teladoc Inc.
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| Issue: | Convertible senior unsecured notes
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| Bookrunner: | Jefferies & Co.
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| Amount: | $240 million, upsized from $200 million
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| Greenshoe: | $35 million, downsized from $30 million
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| Maturity: | Dec. 15, 2022
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| Coupon: | 3%
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| Price: | Par
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| Yield: | 3%
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| Conversion premium: | 30%
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| Conversion price: | $44.00
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| Conversion ratio: | 22.7247
|
| Net share settlement: | Yes
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| Call: | Non-callable for 3.5 years until Dec. 15, 2020, then provisionally callable subject to 130% price hurdle
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| Price talk: | 3% to 3.5%, up 27.5% to 32.5%
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| Pricing date: | June 21
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| Settlement: | June 27
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| Stock symbol: | Nasdaq: TDOC
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| Share price: | $33.85 at close June 21
|
| Market capitalization: | $1.77 billion
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| Distribution: | Rule 144A
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