The offering, of 2.25% convertible senior notes due in 2021, is expected to close May 20, Wright said. Some holders of Wright’s 2.0% notes due in 2017 and 2020 have pledged to exchange the older debt for the notes being issued now, Wright said.
Net proceeds, excluding $54.4 million in 2017 notes, $45.0 million in 2020 notes (Wright said it won’t receive any proceeds from the note swaps) and $45.2 million in hedge transaction fees, are expected to be $241.3 million. That’s slated to be used for “general corporate purposes, Wright said.
Earlier this month, Wright topped the Wall Street’s consensus for its 1st-quarter losses on sales growth of some 132.3%. Losses for the 3 months ended March 27 were -$48.0 million, or -47¢ per share, on sales of $181.0 million. Adjusted to exclude 1-time items, losses per share were -6¢, 19¢ above The Street.
The results prompted Wright to raise its outlook for the rest of the year. The company said it now expects to post adjusted EPS of -59¢ to -64¢, up from prior guidance of -65¢ to -71¢, on sales of $705 million to $715 million, up from $695 million to $705 million previously.