NextGen Healthcare talks $200 million five-year convertibles to yield 3.75% to 4.25%, up 30% to 35%

By Abigail W. Adams

Portland, Me., Oct. 27 – NextGen Healthcare Inc. plans to price $200 million in five-year convertible notes after the market close on Thursday with price talk for a coupon of 3.75% to 4.25% and an initial conversion premium of 30% to 35%, according to a market source.

J.P. Morgan Securities LLC is underwriter for the Rule 144A offering, which carries a greenshoe of $30 million.

The notes are non-callable until Nov. 20, 2025 and then subject to a 130% hurdle.

They are putable upon a fundamental change.

Approximately $50 million of net proceeds will be used to repurchase shares of common stock in privately negotiated transactions with the initial purchasers of the notes with the remaining amount to be used for general corporate purposes.

NextGen is a remotely-based healthcare technology company.

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