Mountain View, Calif.-based Livongo also plans to grant the initial purchasers of the notes, due in 2025, a 13-day option to purchase up to an additional $60 million, according to a news release.
The notes will be general unsecured obligations of Livongo, accruing interest payable semiannually in arrears. They will be convertible under certain circumstances into cash, shares of Livongo’s common stock or a combination of the two.
In connection with the offering, Livongo expects to enter into privately negotiated capped call transactions with one or more of the initial purchasers and/or affiliates and/or other financial institutions. The company plans to use a portion of the net proceeds to pay the cost of capped call transactions.
Livongo said the remainder of the proceeds are earmarked for general corporate purposes, such as working capital, business development, sales and marketing activities and capital expenditures.
The company develops a diabetes program that sets out to provide members with a connected blood glucose meter, unlimited test strips, personalized coaching and real-time insights to help spur behavior change.