Invacare Prices $130 Million Of 5.00% Convertible Senior Notes Due 2021

(RTTNews) - Invacare Corp (IVC) announced that it has priced $130 million of 5.00% convertible senior notes due 2021 in a private offering to qualified institutional buyers. The company expects the sale of the notes to close February 23, 2016.

The company has granted the initial purchasers an option to buy up to an additional $20 million of notes, which shall be delivered within a 13-day period beginning on, and including, the date the Company first issues the notes.

The notes will bear interest at a rate of 5.00% per year payable semi-annually in arrears on February 15 and August 15 of each year, beginning August 15, 2016. The notes will mature on February 15, 2021, unless repurchased or converted in accordance with their terms prior to such date.

In connection with pricing, the company entered into privately negotiated convertible note hedge transactions with JPMorgan Chase Bank, National Association, London Branch and one or more other financial institutions .

The company estimates offering net proceeds to be about $124.8 million (or $144.2 million if the initial purchasers exercise their over-allotment option in full), after expenses.

The company expects to use $5 million of offering proceeds to repurchase the company's common shares. The company intends to use a portion of proceeds to pay the cost of convertible note hedge transactions, which net cost will be $13.52 million and use the remaining proceeds for working capital and general corporate purposes.