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Health Catalyst, Inc. Prices Upsized Offering of $200 Million 2.50% Convertible Senior Notes Due 2025
SALT LAKE CITY, April 09, 2020 (GLOBE NEWSWIRE) -- Health Catalyst, Inc. (Nasdaq: HCAT) (the “Company” or “Health Catalyst”) announced today the pricing of
About this update from Health Catalyst, Inc
[{"type":"text","content":"SALT LAKE CITY, April 09, 2020 (GLOBE NEWSWIRE) -- Health Catalyst, Inc. (Nasdaq: HCAT) (the “Company” or “Health Catalyst”) announced today the pricing of $200.0 million aggregate principal amount of 2.50% convertible senior notes due 2025 (the “notes”) in a private offering (the “offering”) to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The offering was upsized from the previously announced offering of $175.0 million aggregate principal amount of notes. In connection with the offering, the Company granted the initial purchasers an option to purchase up to an additional $30.0 million aggregate principal amount of notes. The sale is expected to close on April 14, 2020, subject to customary closing conditions.\n The Company estimates that the net proceeds from the offering of notes will be approximately $193.2 million (or approximately $222.3 million if the initial purchasers exercise their option to purchase additional notes in full), after deducting the initial purchasers’ discounts and estimated offering expenses payable by the Company. The Company intends to use $18.8 million of the net proceeds from the offering of notes to pay the cost of the capped call transactions described below and approximately $57.0 million of the net proceeds to repay in full and terminate its term loan facility. If the initial purchasers exercise their option to purchase additional notes in full, the Company intends to use approximately $2.8 million of the net proceeds from the sale of the additional notes to enter into additional capped call transactions with the option counterparties (as defined below). The Company intends to use the remaining net proceeds from the offering of notes for working capital and other general corporate purposes, which may include potential acquisitions and strategic transactions. From time to time, the Company evaluates potential acquisitions and strategic transactions of businesses, technologies or products. However, the Company has not designated any specific uses and has no current agreements with respect to any material acquisition or strategic transaction. These intentions are subject to change. The notes will bear interest at a rate of 2.50% per year, payable semi-annually in arrears on April 15 and October 15 of each year, beginning Oc...