By Abigail W. Adams
Portland, Me., Oct. 28 – NextGen Healthcare Inc. priced an upsized $230 million of five-year convertible notes after the market close on Thursday at par at the rich end of talk with a coupon of 3.75% and an initial conversion premium of 35%, according to a company news release and a market source.
Price talk was for a coupon of 3.75% to 4.25% and an initial conversion premium of 30% to 35%.
J.P. Morgan Securities LLC is the bookrunner for the Rule 144A offering, which carries an upsized greenshoe of $45 million.
The initial size of the offering was $200 million with 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.
The notes will be settled in cash up to the principal amount upon conversion.
Net proceeds are expected to be $222.8 million or will be $266.6 million if the greenshoe is exercised in full.
Approximately $40 million of net proceeds will be used to repurchase 2,103,049 shares of common stock in privately negotiated transactions with the initial purchasers of the notes or its affiliate.
The remaining amount will be used for general corporate purposes.
NextGen is a remotely-based health care technology company.
| Issuer: | NextGen Healthcare Inc.
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| Amount: | $230 million
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| Greenshoe: | $45 million
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| Issue: | Convertible senior notes
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| Maturity: | Nov. 15, 2027
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| Bookrunner: | J.P. Morgan Securities LLC
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| Coupon: | 3.75%
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| Price: | Par
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| Yield: | 3.75%
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| Conversion premium: | 35%
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| Conversion price: | $25.68
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| Conversion rate: | 38.9454
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| Call options: | Non-callable until Nov. 20, 2025 and then subject to a 130% hurdle
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| Put options: | Upon a fundamental change
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| Pricing date: | Oct. 27
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| Settlement date: | Nov. 1
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| Distribution: | Rule 144A
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| Talk: | Coupon of 3.75% to 4.25% and initial conversion premium of 30% to 35%
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| Stock symbol: | Nasdaq: NXGN
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| Stock price: | $19.02 at market close Oct. 27
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| Market capitalization: | $1.29 billion
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