National Vision greenshoe lifts 2.5% convertibles to $402.5 million

By Sarah Lizee

Olympia, Wash., May 12 – Initial purchasers for National Vision Holdings Inc.’s five-year 2.5% convertible senior notes exercised their greenshoe in full on Tuesday, bringing the total deal size to $402.5 million, according to an 8-K filing with the Securities and Exchange Commission.

As previously reported, the company priced $350 million of the convertible notes after the market close on Thursday, according to a market source and a press release.

Price talk was for a coupon of 2.5% to 3% and an initial conversion premium of 22.5% to 27.5%.

Goldman Sachs & Co. LLC and BofA Securities Inc. are joint bookrunners for the Rule 144A offering.

The notes are non-callable for three years and then subject to a 130% hurdle with a make-whole.

There is dividend and takeover protection.

The notes will be settled in cash, shares or a combination of both at the company’s option.

Proceeds will be used to repay $75 million of outstanding term loans and $264.5 million of outstanding revolving loans under its credit facilities.

Since the greenshoe has been exercised, remaining proceeds will be used for general corporate purposes.

National Vision Holdings is a Duluth, Ga.-based optical retailer.

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