Invacare (NYSE:IVC) today announced an upcoming offering of $100 million in convertible senior notes due 2022 in a private offering to institutional buyers just days after ex-CEO Malachi Mixon III said he plans to trigger more than 700,000 convertible shares he controls.
The Elyria, Ohio-based company said that in connection with the offering, it expects to grant the initial purchaser an option to purchase up to an additional $15 million aggregate principal amount of notes to be delivered within 13 days from issuance.
Final terms on the notes will be determined at pricing, Invacare said, offering that the notes will not bare interest and will mature on June 1, 2022.
Connected to the offering, the company said it expects to enter a privately negotiated convertible note hedge transaction with Goldman Sachs & Co. covering the number of Invacare shares that will underly the notes to reduce potential equity dilution, according to a press release.
Proceeds from the round will help pay for the cost of the convertible note hedge transaction, with any remaining net proceeds going towards working capital and general corporate purposes.
On June 1, Invacare said that former chairman & CEO Mixon was pulling the trigger on the more than 700,000 convertible shares he controls. The 1-for-1 exchange will take Invacare’s voting power from 40,155,366 votes to 33,820,158 votes, the company said.
“The conversion will substantially diminish the significance of the company’s dual class voting structure, as after completion, the holders of the common shares will represent approximately 99.5% of the company’s total outstanding voting power,” Invacare said in a regulatory filing.