Conmed $125 million convertibles yield 2.5%

New York, Nov. 4 - Conmed Corp. said late Thursday it priced $125 million of convertible senior subordinated notes (B1/B) due 2024 to yield 2.5%.

The company did not disclose the conversion price but did say that the notes will be contingently convertible into a combination of cash and stock.

The yield is towards the low end of talk which put the yield at 2.25% to 3.25% with a 40% to 45% initial conversion premium, according to a market source.

UBS is the bookrunner on the Rule 144A deal that priced after the close Thursday, with Citigroup, Bank of America and JPMorgan acting as co-managers.

The convertibles will be non-callable for seven years, with puts in years seven, 10 and 15.

The notes have contingent interest with a 120% hurdle.

There is also full dividend protection.

A $25 million greenshoe is available, increased from the $18.75 million originally announced.

Of the proceeds, $90 million will be used to repay borrowings under the Utica, N.Y., medical technology company's senior credit agreement while $30 million will be used to buy back common stock in privately negotiated transactions, possibly including shares sold short by purchasers of the convertible notes. Any remaining proceeds will be used to repay debt and for working capital and general corporate purposes.

© 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.