New York, May 3 – Teladoc, Inc. priced an upsized $250 million of seven-year convertible notes after the market close on Thursday with a coupon of 1.375% and a 28.5% initial conversion premium, according to a news release.
The deal was increased from $225 million and came with a coupon at the cheap end of talk or a rate of 0.875% to 1.375% and towards the cheap end of talk for a conversion premium of 27.5% to 32.5%.
Jefferies & Co., J.P. Morgan Securities LLC and Piper Jaffray & Co. are joint bookrunners for the Rule 144A deal, which carries a greenshoe of $37.5 million, increased from $33.75 million.
The notes are contingently convertible until Nov. 15, 2024 when they become freely convertible, according to a company news release.
The notes are non-callable until May 22, 2022 and then callable subject to a 130% hurdle.
Conversion will be settled in cash, shares or a combination of both, according to a company news release.
There is dividend and takeover protection.
Proceeds will be used for working capital and general corporate purposes, including the pursuit of strategic acquisitions.
Teladoc is a Purchase, N.Y.-based provider of virtual healthcare delivery services.
| Issuer: | Teladoc, Inc.
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| Issue: | Convertible senior notes
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| Amount: | $250 million
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| Greenshoe: | $37.5 million
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| Maturity: | May 15, 2025
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| Coupon: | 1.375%
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| Initial conversion premium: | 28.5%
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| Conversion price: | $53.58
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| Conversion rate: | 18.6621
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| Call: | From May 22, 2022 subject to 130% hurdle
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| Contingent conversion: | Yes
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| Bookrunners: | Jefferies & Co., J.P. Morgan Securities LLC and Piper Jaffray & Co.
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| Pricing date: | May 3
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| Settlement date: | May 8
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| Distribution: | Rule 144A
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| Stock symbol: | NYSE: TDOC
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| Stock price: | $41.70 at close on May 3
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| Market capitalization: | $2.60 billion
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