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Livongo greenshoe ups five-year convertible notes to $550 million
By Sarah Lizee
Olympia, Wash., June 4 – Initial purchasers for Livongo Health Inc.’s five-year convertible notes exercised their $75 million greenshoe in full on Tuesday, bringing the total deal size to $550 million, according to an 8-K filing with the Securities and Exchange Commission.
As previously reported, the company priced an upsized $475 million of the convertible notes after the market close on Monday at par with a coupon of 0.875% and an initial conversion premium of 27.5%, according to a company news release.
Pricing came toward the rich end of talk for a coupon of 0.75% to 1.25% and at the midpoint of talk for an initial conversion premium of 25% to 30%, according to a market source.
Morgan Stanley & Co. LLC (lead left), J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC were bookrunners for the Rule 144A offering.
The initial size of the offering was $400 million with a greenshoe of $60 million.
The notes are non-callable until June 5, 2023 and then subject to a 130% hurdle.
They will be settled in cash, shares or a combination of both at the company’s option.
In connection with the offering, the company entered into capped call transactions with a cap price of $118.54, which represents a premium of 100% over the last reported sales price of stock.
Net proceeds are expected to be $534 million with the greenshoe exercised in full.
About $60.3 million of proceeds will be used to cover the cost of the call spread with the remaining amount to be used for general corporate purposes.
Livongo Health is a Mountain View, Calif.-based data-based health coaching program with products that help with the management of chronic diseases.
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