Allscripts releases pricing of $200M convertible notes offering

Allscripts announced on Dec. 5 the pricing for its $200 million convertible senior notes offering, which the Chicago-based EHR vendor unveiled earlier this week.

The offering and sale to initial purchasers of the $200 million available in convertible senior notes, which is part of a private offering to qualified institutional buyers, is anticipated to close on Dec. 9, according to the news release.

The notes, which harbor an interest rate at 0.875 percent per year, will be convertible at the discretion of the holders only in certain circumstances and during certain periods. The initial conversion rate for the notes will be 75.09 shares per $1,000, which is equivalent to an initial conversion price of approximately $13.32 per share.

Allscripts anticipates the profits of the notes will be approximately $195 million, before estimated offering expenses. The company plans to use $15.8 million of the profits to pay the cost of capped call transactions, which the company established with initial purchasers including JPMorgan Chase Bank and Bank of America.

Allscripts plans to use the remaining profits to repay outstanding borrowings under its senior secured revolving credit facility.

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