Zynex to sell $50 million three-year convertible notes

By Abigail W. Adams

Portland, Me., May 3 – Zynex Inc. plans to price $50 million of three-year convertible notes in a Rule 144A offering, according to a company news release and a market source.

RBC Capital Markets LLC is bookrunner for the offering, which carries a greenshoe of $7.5 million.

The notes will be settled in cash, shares or a combination of both at the company’s option.

Concurrently with the convertible notes, Zynex CEO Thomas Sandgaard is selling 2 million shares in a secondary offering, which carries a greenshoe of 300,000 shares.

Zynex will receive no proceeds from the secondary offering.

Approximately $9.3 million of net proceeds from the convertible notes offering will be used to repay borrowings under the company’s $16 million term loan with remaining proceeds to be used for general corporate purposes.

Zynex is an Englewood, Colo.-based medical device company.

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