Haemonetics
(NYSE: HAE)
announced its intention to offer $525 million in convertible senior notes due 2029 in a private offering.
The Boston-based company’s notes accrue interest payable semi-annually in arrears. They mature on June 1, 2029, unless earlier repurchased, redeemed or converted. Haemonetics also expects to grant initial purchasers of the notes an option to purchase up to an additional $75 million.
Noteholders can convert their notes in certain circumstances and during specified periods. The company will settle any conversion amounts of the notes up to the $1,000 principal amount of the notes in cash and any conversion amounts in excess of the principal amount in cash, shares of Haemonetics’ common stock or a combination thereof, at Haemonetics’ election.
The company plans to determine the final terms of the notes, including the initial conversion price and interest rate, at the time of pricing.
Haemonetics plans to use the proceeds to to fund the cost of entering into capped call transactions. If the initial purchasers exercise the additional option, the company also intends to use a portion of the additional proceeds to fund the cost of entering into more capped call transactions. Other uses of the funds include working capital and other general corporate purposes.
It’s been a busy time for Haemonetics over the past six months, with a $160 million acquisition of Attune Medical last month and the $255 million buy of OpSens in December 2023.
