Haemonetics Prices $600 Mln, 2.5% Convertible Sr. Notes

(RTTNews) - Haemonetics Corporation (HAE) Thursday priced its private offering of $600 million 2.50 percent Convertible Senior Notes due 2029. The size of the offering has been upsized from $525 million.

The company plans to use the net proceeds to pay cost of the capped call transactions, repurchase 200 million of 0.00% senior notes due 2026, pay off $230.0 million balance on the revolving credit facility, and for working capital and other general purposes.

Haemonetics also granted the initial purchasers an option to purchase up to an additional $100 million of notes.

The initial conversion rate of notes is 8.5385 shares per $1,000 of notes, which represents an initial conversion price of about $117.12 per share. The initial conversion price is a premium of about 30 percent over the closing price of Haemonetics shares on May 22, 2024.

Haemonetics estimates that the net proceeds from the offering will be about $584.8 million or nearly $682.3 million if the initial purchasers fully exercise their option to purchase additional notes.