Yesterday, the Atlanta-based company said it is offering the 4.25% notes, due in 2025, as well as a 13-day option for the initial purchaser to buy up to an additional $15 million in notes, which will be senior unsecured obligations of the company.
CryoLife expects the sale to the initial purchaser to settle on June 23, subject to customary conditions, with the company receiving approximately $96.5 million in net proceeds, or $111.1 million if the initial purchaser exercises its option to purchase additional notes in full.
The notes will bear interest at a rate of 4.25% per year, with interest payable semiannually in arrears on Jan. 1 and July 1 of each year, beginning on Jan. 1, 2021. The notes will mature on July 1, 2025, unless earlier converted, redeemed or repurchased.
According to a news release, the initial conversion rate is 42.6203 shares of CryoLife’s common stock per $1,000 principal amount of notes, equivalent to approximately $23.46 per share. That represents a premium of approximately 35% over the last reported sale of CryoLife’s common stock at $17.38 per share yesterday.
CryoLife intends to use the proceeds for general corporate purposes, including the repayment of approximately $30 million outstanding under its revolving credit facility. Any additional proceeds from the 13-day option will also go toward general corporate purposes.
The company develops medical devices and implantable tissues used in cardiac and vascular surgical procedures focused on aortic repair.