Allscripts greenshoe increases 0.875% convertibles to $218 million

By Angela McDaniels

Tacoma, Wash., Dec. 20 – The underwriters of Allscripts Healthcare Solutions, Inc.’s 0.875% seven-year convertible notes partially exercised their over-allotment option, increasing the size of the issue by $18 million to $218 million.

As previously reported, the company priced $200 million of the convertibles after the market close on Dec. 4 at par with an initial conversion premium of 32.5%.

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 30% to 35%, according to a market source.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC were joint bookrunners for the Rule 144A offering, which came with a $30 million greenshoe.

The notes are non-callable and have no put feature. They will be settled in cash, shares or a combination of both at the company’s option.

In connection with the pricing, Allscripts entered into capped call transactions.

About $17.22 million of the proceeds were used to cover the cost of capped call transactions. The remaining proceeds will be used to repay the outstanding amount under the company’s senior secured revolving credit facility.

Allscripts is a Chicago-based health care technology company.

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