By Ronda Fears
Nashville, May 6 - Edward LifeSciences Corp. sold $125 million of 30-year convertible senior notes at par to yield 3.875% with a 90% initial conversion premium in an overnight Rule 144A deal via lead manager JPMorgan.
The issue sold at the cheap end of guidance which had put the yield at 3.375% to 3.875% and the initial conversion premium at 90% to 95%.
Edwards plans to use around $25 million to $40 million of proceeds to repurchase common stock concurrently with the offering. Remaining proceeds will be used for general corporate purposes, which may include stock repurchases and debt repayment.
The company focuses on providing products and technologies to address cardiovascular disease.
Terms of the deal are:
Issuer: Edwards LifeSciences Corp.
| Issue: | Convertible senior unsecured notes
|
| Lead manager: | JPMorgan
|
| Amount | $125 million
|
| Greenshoe: | $25 million
|
| Maturity: | May 15, 2033
|
| Coupon: | 3.875%
|
| Price: | Par
|
| Yield: | 3.875%
|
| Conversion premium: | 90%
|
| Conversion price: | $54.663
|
| Conversion ratio: | 18.2949
|
| Call: | Non-callable for 5 years
|
| Put: | In years 5, 10 and 15
|
| Contingent conversion: | 120%
|
| Contingent payment: | 120%
|
| Settlement: | May 9
|
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