Accolade talks $250 million five-year convertible notes to yield 0%-0.5%, up 30%-35%

By Abigail W. Adams

Portland, Me., March 23 – Accolade Inc. plans to price $250 million of five-year convertible notes after the market close on Wednesday with price talk for a coupon of 0% to 0.5% and an initial conversion premium of 30% to 35%, according to a market source.

Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, BofA Securities Inc., Piper Sandler Co., Credit Suisse Securities (USA) LLC, William Blair & Co. LLC, SVB Leerink LLC and Academy Securities Inc. are joint bookrunners for the Rule the Rule 144A offering, which carries a greenshoe of $37.5 million.

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

There is dividend and takeover protection.

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

In connection with the offering, the company will enter into capped call transactions.

Proceeds will be used to cover the cost of the call spread and for general corporate purposes, which may include capital expenditures, acquisitions and strategic investments.

Accolade is a Seattle-based health care technology company.

© 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.