Alignment Healthcare Announces Private Convertible Senior Notes Transaction
Alignment Healthcare (NASDAQ: ALHC) has announced a private placement of $330 million in 4.25% Convertible Senior Notes due 2029. The notes will be convertible at an initial price of $16.04, representing a 25% premium to the stock's closing price on November 14, 2024. The company expects to receive net proceeds of approximately $321.05 million, which will be used to repay its existing term loan facility (currently at SOFR + 6.5%) and for general corporate purposes. The placement agent plans to purchase about 3.442 million shares of company stock in private transactions.
Alignment Healthcare (NASDAQ: ALHC) ha annunciato un collocamento privato di 330 milioni di dollari in Obbligazioni Convertibili Senior al 4,25% con scadenza nel 2029. Le obbligazioni saranno convertibili a un prezzo iniziale di 16,04 dollari, che rappresenta un premio del 25% rispetto al prezzo di chiusura delle azioni del 14 novembre 2024. L'azienda prevede di ricevere proventi netti di circa 321,05 milioni di dollari, che saranno utilizzati per rimborsare il proprio prestito a termine esistente (attualmente a SOFR + 6,5%) e per scopi aziendali generali. L'agente di collocamento prevede di acquistare circa 3,442 milioni di azioni della società in transazioni private.
Alignment Healthcare (NASDAQ: ALHC) ha anunciado una colocación privada de 330 millones de dólares en Notas Senior Convertibles al 4,25% que vencerán en 2029. Las notas serán convertibles a un precio inicial de 16,04 dólares, lo que representa una prima del 25% sobre el precio de cierre de las acciones del 14 de noviembre de 2024. La empresa espera recibir ingresos netos de aproximadamente 321,05 millones de dólares, que se utilizarán para pagar su préstamo a plazo existente (actualmente en SOFR + 6,5%) y para propósitos corporativos generales. El agente de colocación planea comprar alrededor de 3,442 millones de acciones de la empresa en transacciones privadas.
Alignment Healthcare (NASDAQ: ALHC)가 2029년 만료되는 4.25% 전환형 시니어 노트에 대한 3억 3천만 달러의 사모 배정을 발표했습니다. 이 노트는 2024년 11월 14일 주식의 종가에 비해 25% 프리미엄을 나타내는 16.04달러의 초기 가격으로 전환 가능하게 됩니다. 회사는 대략 3억 2천 1백 5십만 달러의 순 수익을 받을 것으로 예상하고 있으며, 이는 기존의 기한 대출 시설(현재 SOFR + 6.5%)을 상환하고 일반 기업 목적에 사용될 것입니다. 배정 대행자는 사모 거래로 약 344만 2천 주의 회사 주식을 구매할 계획입니다.
Alignment Healthcare (NASDAQ: ALHC) a annoncé un placement privé de 330 millions de dollars en Obligations Convertibles Senior à 4,25% arrivant à échéance en 2029. Les obligations seront convertibles à un prix initial de 16,04 dollars, représentant une prime de 25% par rapport au prix de clôture de l'action du 14 novembre 2024. La société prévoit de recevoir des produits nets d'environ 321,05 millions de dollars, qui seront utilisés pour rembourser son prêt à terme existant (actuellement à SOFR + 6,5%) et à des fins corporatives générales. L'agent de placement prévoit d'acheter environ 3,442 millions d'actions de la société dans des transactions privées.
Alignment Healthcare (NASDAQ: ALHC) hat eine Privatplatzierung von 330 Millionen US-Dollar in 4,25% wandelbaren Anleihen mit Fälligkeit im Jahr 2029 angekündigt. Die Anleihen werden zu einem Anfangspreis von 16,04 US-Dollar wandelbar sein, was einen Aufschlag von 25% auf den Schlusskurs der Aktie am 14. November 2024 darstellt. Das Unternehmen rechnet mit Nettomitteln von etwa 321,05 Millionen US-Dollar, die zur Tilgung seiner bestehenden Terminkreditfazilität (derzeit SOFR + 6,5%) und für allgemeine Unternehmenszwecke verwendet werden sollen. Der Platzierungsagent plant, etwa 3,442 Millionen Aktien des Unternehmens in privaten Transaktionen zu erwerben.
- Lower cost of capital through refinancing of existing term loan facility
- Secured $321.05 million in net proceeds through convertible notes offering
- Favorable 4.25% interest rate on new notes compared to previous SOFR + 6.5%
- Potential future dilution for shareholders due to convertible nature of notes
- Additional long-term debt obligation of $330 million
- Placement agent's stock purchases may create temporary market price volatility
Insights
This convertible notes transaction represents a significant strategic financial move. The
The placement agent's planned purchase of 3.442 million shares could provide near-term price support. With current SOFR around
The market's reaction to this debt restructuring will likely be positive as it demonstrates proactive management of capital structure. The transaction addresses two key aspects: cost reduction through lower interest rates and extended maturity to 2029, providing enhanced financial stability. The conversion premium suggests management's optimistic outlook on share price appreciation potential.
The concurrent share purchases by the placement agent create a temporary technical support for the stock price, while the convertible structure provides investors with both downside protection and upside participation. This balanced approach should appeal to both equity and fixed-income investors, potentially broadening the company's investor base.
Proceeds to be used to lower the Company’s cost of capital by repaying the Company’s existing term loan facility and for general corporate purposes
ORANGE, Calif., Nov. 15, 2024 (GLOBE NEWSWIRE) -- Alignment Healthcare, Inc. (NASDAQ: ALHC) (the “Company”) today announced that it has entered into privately negotiated subscription agreements with certain investors, pursuant to which it will issue
The Notes will be senior, unsecured obligations of the Company, and interest will be payable semi-annually in arrears at a rate of
The Company anticipates the net cash proceeds from the issuance of the Notes will be approximately
In connection with the issuance of the Notes, the Company has been advised that the placement agent for the Notes intends to purchase approximately 3.442 million shares of the Company’s common stock in privately negotiated transactions from certain purchasers of the Notes through a financial intermediary at a discount to the last reported sale price of the Company’s common stock on November 14, 2024. Such purchases by the placement agent of the Company’s common stock could increase (or reduce the size of any decrease in) the market price of the common stock or the Notes.
Additional information regarding this announcement may be found in a Current Report on Form 8-K that the Company intends to file with the U.S. Securities and Exchange Commission (the “SEC”).
This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities (including the shares of Company common stock, if any, issuable upon conversion of the Notes) and shall not constitute an offer, solicitation, or sale in any jurisdiction in which such offer, solicitation, or sale is unlawful.
The Notes and any shares of common stock issuable upon conversion of the Notes have not been registered under the Securities Act of 1933, as amended, or any state securities law and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
About Alignment Healthcare
Alignment Health is championing a new path in senior care that empowers members to age well and live their most vibrant lives. A consumer brand name of Alignment Healthcare (NASDAQ: ALHC), Alignment Health’s mission-focused team makes high-quality, low-cost care a reality for its Medicare Advantage members every day. Based in California, the company partners with nationally recognized and trusted local providers to deliver coordinated care, powered by its customized care model, 24/7 concierge care team and purpose-built technology, AVA®. As it expands its offerings and grows its national footprint, Alignment upholds its core values of leading with a serving heart and putting the senior first
Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include statements concerning the estimated net proceeds of the offering, the anticipated use of such net proceeds and the expected closing of the offering. Forward-looking statements are subject to risks and uncertainties and are based on assumptions that may prove to be inaccurate, which could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. Important risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: our ability to attract new members and enter new markets, including the need for certain governmental approvals; our ability to maintain a high rating for our plans on the Five Star Quality Rating System; our ability to develop and maintain satisfactory relationships with care providers that service our members; risks associated with being a government contractor; changes in laws and regulations applicable to our business model; risks related to our indebtedness, including the potential for rising interest rates; changes in market or industry conditions and receptivity to our technology and services; results of litigation or a security incident; and the impact of shortages of qualified personnel and related increases in our labor costs. There can be no assurance that the Company will be able to complete the offering on the anticipated terms, or at all. For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our Annual Report on Form 10-K for the year ended December 31, 2023, and the other periodic reports we file with the SEC. All information provided in this release and in the attachments is as of the date hereof, and we undertake no duty to update or revise this information unless required by law.
Investor Contact
Harrison Zhuo
hzhuo@ahcusa.com
Media Contact
Priya Shah
mPR, Inc. for Alignment Healthcare
alignment@mpublicrelations.com
FAQ
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