Evolent Health prices $150m convertible debt offering

Evolent Health (NYSE:EVH) yesterday priced an upcoming $150 million convertible debt offering.

The Arlington, Va.-based company said it plans to offer 1.5% convertible senior notes due 2025 in the offering, with a 30-day option to initial purchasers to acquire an additional $22.5 million aggregate principal amount of notes.

Interest on the notes is payable semiannually in arrears on April 15 and October 15 of each year beginning next April 15 at a rate equal to 1.5% per annum, according to an sec filing.

The notes are convertible into cash, shares of the company’s Class A common stock or a combination of the two at an initial conversion rate of approximately 29.9 shares of Class A stock per $1,000 principal amount of notes, representing a 32.5% premium over the closing of the company’s stock yesterday.

The offering was increased from an earlier announcement, with the company having originally expected to offer $125 million in the notes.

Proceeds from the round will support working capital and other general corporate purposes, according to an SEC filing.

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