Heska greenshoe ups 3.75% seven-year convertibles to $86.25 million

By Rebecca Melvin

New York, Sept. 17 – The underwriters of Heska Corp.’s 3.75% convertible notes due 2026 exercised their $11.25 million over-allotment option in cull, bringing the deal size up to $86.25 million.

As previously reported, the company priced $75 million of the convertibles with a 35% initial conversion premium on Sept. 12.

J.P. Morgan Securities LLC and Piper Jaffray & Co. were the initial purchasers of the Rule 144A deal.

The notes are non-callable for four years and provisionally callable thereafter at a share price hurdle of 130%.

The notes are convertible prior to March 15, 2026 at the option of the holders only upon the occurrence of certain events and during certain periods. They have standard takeover and dividend protection and net share settlement.

The proceeds of the notes will be used to repay all outstanding indebtedness of $12.75 million under its existing credit facility, to fully fund a $2 million cash collateral account contemplated to secure its obligations under its credit facility as amended in connection with the offering, to fund its intended expansion efforts, including through acquisitions of complementary businesses or technologies or other strategic transactions, and for working capital and other general corporate purposes.

The veterinary diagnostic and specialty health care products company is based in Loveland, Colo.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.