The San Diego-based spine technology company is offering the notes, due in 2023, as well as granting initial purchasers a 13-day option to purchase up to an additional $50 million in notes.
According to a news release, the notes will be paid semiannually in arrears on June 1 and Dec. 1 of each year, beginning on Dec. 1, 2020. The notes will mature on June 1, 2023, unless earlier repurchased or converted.
Prior to the close of business on the business day immediately before Feb. 1, 2023, the notes will be convertible at the option of the holders. After the close of business on the second scheduled trading day preceding maturity, they will be convertible at the option of the holders at any time. Interest rate, conversion rate and other terms will be determined at the time of the offering’s pricing.
NuVasive expects to enter into privately negotiated convertible note hedge transactions and warrant transactions with one or more dealers in connection to the offering, as well.
The company plans to use a portion of the net proceeds to pay the cost of the convertible note hedge transactions, with the remainder earmarked for working capital and other general corporate purposes. That may include potential mergers and acquisitions, refinancing indebtedness and repurchasing outstanding convertible senior notes due 2021.
Earlier this year, NuVasive announced the pricing of a $450 million offering of convertible senior notes in a private placement. That offering consists of an aggregate principal amount of 0.375% convertible notes due in 2025.