Teladoc greenshoe lifts 5.5-year 3% convertibles to $275 million

By Wendy Van Sickle

Columbus, Ohio, June 29 – The $35 million greenshoe for Teladoc Inc.’s 5.5-year 3% convertible notes was fully exercised on Tuesday, lifting the total deal size to $275 million, according to an 8-K filing with the Securities and Exchange Commission.

The company priced $240 million of the convertibles, upsized from an originally planned $200 million, on June 26, with an initial conversion premium of 30%. The greenshoe was upsized from original talk of $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.

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