NextGen greenshoe lifts five-year convertibles to $275 million

By Wendy Van Sickle

Columbus, Ohio, Nov. 1 – Underwriters for NextGen Healthcare Inc.’s 3.75% convertible notes due Nov. 15, 2027 exercised their fully $45 million greenshoe, enlarging the total size of the deal to $275 million, according to an 8-K filing with the Securities and Exchange Commission.

The company priced $230 million of the convertibles after the market close last Thursday at par at the rich end of talk with an initial conversion premium of 35%, as previously reported.

Price talk was for a coupon of 3.75% to 4.25% and an initial conversion premium of 30% to 35%.

J.P. Morgan Securities LLC is the bookrunner for the Rule 144A offering.

The offering was upsized from $200 million with a greenshoe of $30 million.

The notes are non-callable until Nov. 20, 2025 and then subject to a 130% hurdle.

They are putable upon a fundamental change.

The notes will be settled in cash up to the principal amount upon conversion.

Approximately $40 million of net proceeds will be used to repurchase 2,103,049 shares of common stock in privately negotiated transactions with the initial purchasers of the notes or its affiliate.

The remaining amount will be used for general corporate purposes.

NextGen is a remotely based health care technology company.

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