By Abigail W. Adams
Portland, Me., Dec. 6 – Evolent Health Inc. priced $350 million of six-year convertible notes after the market close on Tuesday at par with a coupon of 3.5% and an initial conversion premium of 42.5%, according to a company news release and a market source.
Pricing came at the midpoint of talk for a coupon of 3.25% to 3.75% and at the rich end of talk for an initial conversion premium of 37.5% to 42.5%, according to a market source.
Goldman Sachs & Co. LLC and Oppenheimer & Co. Inc. were bookrunners for the Rule 144A offering, which carries a greenshoe of $52.5 million.
The notes are non-callable until Dec. 6, 2026 and then subject to a 130% hurdle.
There is takeover and dividend protection.
The notes will be settled in cash, shares or a combination of both.
Proceeds will be used to prepay outstanding borrowings under its term loan due January 2029.
Evolent Health is an Arlington, Va.-based company that partners with health care payers and providers to reduce the cost of care.
| Issuer: | Evolent Health Inc.
|
| Amount: | $350 million
|
| Greenshoe: | $52.5 million
|
| Issue: | Convertible senior notes
|
| Maturity: | Dec. 1, 2029
|
| Bookrunners: | Goldman Sachs & Co. LLC and Oppenheimer & Co. Inc.
|
| Coupon: | 3.5%
|
| Price: | Par
|
| Yield: | 3.5%
|
| Conversion premium: | 42.5%
|
| Conversion price: | $38
|
| Conversion rate: | 26.3125
|
| Call options: | Non-callable until Dec. 6, 2026 and then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | Dec. 5
|
| Settlement date: | Dec. 8
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 3.25% to 3.75% and initial conversion premium of 37.5% to 42.5%
|
| Stock symbol: | NYSE: EVH
|
| Stock price: | $26.67 at market close Dec. 4
|
| Market capitalization: | $3.066 billion
|
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