Enovis To Offer $400 Mln Of Convertible Senior Notes In Private Placement

(RTTNews) - Enovis Corp (ENOV), a medical technology company, announced on Thursday its intention to offer $400 million aggregate principal amount of Convertible Senior Notes due 2028 in a private offering.

The company expects to enter into a privately negotiated capped call transaction with one or more of the initial purchasers or their respective affiliates and other financial institutions.

The notes will mature on October 15, 2028 and will be converted on the option of the holders contingent on specified conditions prior to April 15, 2028.

Post April 15, 2028 the notes can be converted at the option of the holders regardless of such conditions. The company intends to use the net proceeds from the private offering along with around $400 million of borrowings under a new term loan facility, and cash to fund the pending acquisition of LimaCorporate S.p.A.

It will also use a portion of the proceeds to pay the cost of the capped call transactions.

If the initial purchases opt to purchase additional Notes, the Company expects to use a portion of the net proceeds from the sale of the additional Notes to enter into additional capped call transactions and the remainder to fund the purchase price of the Lima Acquisition.

If the acquisition of Lima is not completed on or before June 30, 2024, then the acquisition agreement is terminated and the company may redeem all of the motes on a date on or prior to September 30, 2024.

In pre-market activity, Enovis shares are trading at $47.79 down 1.44% on the New York Stock Exchange.