Cantel Medical greenshoe lifts 3.25% convertibles to $168 million

By Wendy Van Sickle

Columbus, Ohio, May 22 – Underwriters for Cantel Medical Corp.’s 3.25% five year convertible notes fully exercised their $28 million greenshoe, increasing the total deals size to $168 million, according to a press release Friday.

The company priced a downsized $140 million of the convertibles after the market close on Tuesday at par at the cheap end of talk with an initial conversion premium of 30%, as previously reported.

Price talk was for a coupon of 2.75% to 3.25% and an initial conversion premium of 30% to 35.

BofA Securities, Inc. and J.P. Morgan Securities LLC are joint bookrunners for the Rule 144A offering.

The initial size of the offering was $150 million with a greenshoe of $22.5 million.

The notes are contingently convertible until Feb. 15, 2025.

They are non-callable until May 17, 2023 and then subject to a 130% hurdle over the conversion price.

There is dividend and takeover protection.

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

Net proceeds are expected to be $163 million with the greenshoe exercised in full.

Proceeds will be used to repay debt under the company’s credit facilities and for general corporate purposes.

Proceeds in excess of $100 million must be used for the repayment of debt according to the second amendment of its May 11, 2020 credit agreement, according to a company news release.

Cantel Medical is a Little Falls, N.J.-based medical equipment 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.