By Rebecca Melvin
New York, June 13 - Allscripts Healthcare Solutions Inc. priced $300 million of seven-year convertible senior notes at par to yield 1.25% with an initial conversion premium of 30%, according to a syndicate source.
Pricing came at the midpoint of talk, which was for a 1% to 1.5% coupon and a 27.5% to 32.5% premium.
The Rule 144A deal, which has a $45 million greenshoe, was sold via joint bookrunners Citigroup Global Markets Inc. and J.P. Morgan Securities LLC.
The notes are non-callable for life with no puts. There is takeover protection and dividend protection via a standard conversion ratio.
Proceeds will be used to repay debt and also to pay the cost of a call spread, or convertible note hedge and warrant transactions with initial purchasers of the notes or their affiliates.
The strike on the warrant transactions is $23.1350, which boosts the effective premium from the issuer's perspective to about 75%.
Allscripts is a Chicago-based provider of software, connectivity and information services for physicians.
| Issuer: | Allscripts Healthcare Solutions Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $300 million
|
| Greenshoe: | $45 million
|
| Maturity: | July 1, 2020
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC
|
| Co-managers: | Deutsche Bank Securities Inc., SunTrust Robinson Humphrey Inc., KeyBanc Capital Markets LLC
|
| Coupon: | 1.25%
|
| Price: | Par
|
| Yield: | 1.25%
|
| Conversion premium: | 30%
|
| Conversion price: | $17.19
|
| Conversion ratio: | 58.1869
|
| Settlement: | Cash settled
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Call spread: | Yes; warrant strike $23.1250, boosts premium from issuer's perspective to 75%
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Price talk: | 1%-1.5%, up 27.5%-32.5%
|
| Pricing date: | June 12
|
| Settlement date: | June 18
|
| Stock symbol: | Nasdaq: MDRX
|
| Stock reference price: | $13.22 as of close June 12
|
| Distribution: | Rule 144A
|
| Market capitalization: | $2.3 billion
|
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