By Abigail W. Adams
Portland, Me., May 5 – Zynex Inc. sold an upsized $52.5 million offering of three-year convertible notes after the market close on Thursday with a coupon 5% and an initial conversion premium of 15%, according to a company news release.
RBC Capital Markets LLC was bookrunner for the Rule 144A offering, which carries a greenshoe of $7.5 million.
The initial size of the offering was $50 million. The greenshoe was not upsized.
The notes are non-callable until May 20, 2025 and are then subject to a 130% hurdle.
They are putable upon a fundamental change.
Zynex CEO Thomas Sandgaard had previously announced his attention to concurrently sell 2 million shares in a non-contingent secondary offering, from which the company would receive no proceeds.
However, the secondary offering was withdrawn due to market conditions.
Net proceeds from the convertible notes offering are expected to be $50 million or will be $57.2 million if the greenshoe is exercised in full.
Zynex plans to use approximately $8.5 million of net proceeds to repay borrowings under the company’s $16 million term loan.
Remaining proceeds will be used for general corporate purposes, which may include acquisitions or strategic investments.
Zynex is an Englewood, Colo.-based medical device company.
| Issuer: | Zynex Inc.
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| Amount: | $52.5 million
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| Greenshoe: | $7.5 million
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| Issue: | Convertible senior notes
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| Maturity: | May 15, 2026
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| Bookrunner: | RBC Capital Markets LLC
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| Coupon: | 5%
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| Conversion premium: | 15%
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| Conversion price: | $10.78
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| Conversion rate: | 92.8031
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| Call options: | Non-callable until May 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: | May 4
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| Settlement date: | May 9
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| Distribution: | Rule 144A
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| Stock symbol: | Nasdaq: ZYXI
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| Stock price: | $9.37 at market close May 4
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| Market capitalization: | $343.46 million
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