Invacare Corporation Announces Private Exchange to Retire Approximately $33 Million Principal Amount of Its 5.0% Convertible Senior Notes Due 2021 and Approximately $39 Million Principal Amount of Its 4.5% Convertible Senior Notes Due 2022

Nachrichtenquelle: Business Wire (engl.)
01.06.2020, 12:30  |  125   |   |   

Invacare Corporation (NYSE: IVC) (the “Company”) entered into separate, privately negotiated agreements with certain holders of its 5.0% Convertible Senior Notes due 2021 (the “2021 Notes”) and certain holders of its 4.5% Convertible Senior Notes due 2022 (the “2022 Notes”) to exchange approximately $32.9 million in aggregate principal amount of 2021 Notes and $38.5 million in aggregate principal amount of 2022 Notes, for aggregate consideration of approximately $71.4 million in aggregate principal amount of new 5.0% Series II Convertible Senior Exchange Notes due 2024 (the “New Notes”). Exchanging holders of the 2021 Notes received an equal principal amount of New Notes, plus an amount of cash equal to the accrued and unpaid interest on the exchanged 2021 Notes up to, but excluding the closing date and approximately $3.9 million in cash. Exchanging holders of the 2022 Notes received an equal principal amount of New Notes, plus an amount of cash equal to the accrued and unpaid interest on the exchanged 2022 Notes up to, but excluding the closing date and approximately $1.3 million in cash. Following the closing of these transactions, $28.2 million in aggregate principal amount of the 2021 Notes and $81.5 million in aggregate principal amount of the 2022 Notes will remain outstanding with terms unchanged. The exchange is expected to close on June 4, 2020, subject to customary closing conditions.

The New Notes will bear interest at a rate of 5.0% per year payable semi-annually in arrears on May 15 and November 15 of each year, beginning November 15, 2020. Interest on the New Notes will accrue from June 4, 2020. The principal amount of the New Notes also will accrete at a rate of approximately 4.7% per year commencing June 4, 2020, compounding on a semi-annual basis. The accreted portion of the principal is payable in cash upon maturity but does not bear interest and is not convertible into the Company’s common shares. The New Notes will mature on November 15, 2024, unless earlier repurchased, redeemed or converted.

The conversion rate for the New Notes will initially be 67.6819 of the Company’s common shares per $1,000 principal amount of New Notes (equivalent to an initial conversion price of approximately $14.78 per common share). The initial conversion price of the New Notes represents a premium of approximately 140% to the $6.16 per share last reported sale price of the Company’s common shares on May 29, 2020. The New Notes will be convertible at the option of the holders in certain circumstances into cash, common shares or a combination of cash and common shares, at the Company’s election. With the New Notes having a significant conversion premium, this implies an incremental increase of approximately 484,000 common shares, or approximately 1.4% compared to the common shares underlying the notes to be exchanged.

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