Teladoc offers $250M in convertible notes

To meet international demand, Teladoc made $250 million available in convertible senior notes as part of a private offering to qualified institutional buyers in a deal set to close May 8.

Companies generally turn to convertible notes as a way to finance operations or acquisitions when they lack access to free cash flow, according to SeedInvest.

Teladoc plans to use the profits from the offering — which it rose from an initial $25 million the day prior — for working capital and other general corporate purposes, including potential strategic acquisitions, as well as to pay fees, commissions and expenses related to the offering. Teladoc will not be able to redeem the notes until May 22, 2022.

The notes, which must meet certain conditions, will be convertible at an initial conversion rate of 18.66 shares per $1,000, or in other words, an initial conversion price of approximately $53.58 per share.

Click here to read Teladoc's complete announcement.

More articles on telehealth:
Alabama hospital uses telehealth to minimize travel times for kidney transplant patients
Report: One-third of patients who used a hospital's telehealth platform received in-person care at the facility within 1 year
Providence St. Joseph Health launches telehealth network across western US

© Copyright ASC COMMUNICATIONS 2018. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months