Integer Holdings Corporation Announces Upsize and Pricing of Convertible Notes Offering
Integer Holdings (NYSE: ITGR) has announced the pricing of $875.0 million convertible senior notes due 2030, upsized from the previously announced $750.0 million. The notes will carry a 1.875% interest rate and mature on March 15, 2030.
The company expects net proceeds of approximately $853.9 million (or $976.1 million if the initial purchasers exercise their additional notes option). Integer will use about $62.1 million for capped call transactions and $384.4 million to exchange approximately $383.7 million of existing 2.125% convertible notes due 2028.
The notes will be convertible at an initial rate of 6.6243 shares per $1,000 principal amount, equivalent to a conversion price of $150.96 per share, representing a 27.5% premium over the March 13, 2025 closing price of $118.40.
Integer Holdings (NYSE: ITGR) ha annunciato il prezzo delle note senior convertibili da 875,0 milioni di dollari con scadenza nel 2030, aumentato rispetto ai 750,0 milioni di dollari precedentemente annunciati. Le note porteranno un tasso d'interesse del 1,875% e scadranno il 15 marzo 2030.
L'azienda prevede ricavi netti di circa 853,9 milioni di dollari (o 976,1 milioni di dollari se i compratori iniziali esercitano l'opzione di note aggiuntive). Integer utilizzerà circa 62,1 milioni di dollari per transazioni di capped call e 384,4 milioni di dollari per scambiare circa 383,7 milioni di dollari di note convertibili esistenti al 2,125% in scadenza nel 2028.
Le note saranno convertibili a un tasso iniziale di 6,6243 azioni per 1.000 dollari di valore nominale, equivalente a un prezzo di conversione di 150,96 dollari per azione, che rappresenta un premio del 27,5% rispetto al prezzo di chiusura del 13 marzo 2025 di 118,40 dollari.
Integer Holdings (NYSE: ITGR) ha anunciado el precio de 875,0 millones de dólares en notas senior convertibles con vencimiento en 2030, incrementado desde los 750,0 millones de dólares anunciados previamente. Las notas tendrán una tasa de interés del 1,875% y vencerán el 15 de marzo de 2030.
La compañía espera ingresos netos de aproximadamente 853,9 millones de dólares (o 976,1 millones de dólares si los compradores iniciales ejercen su opción de notas adicionales). Integer utilizará alrededor de 62,1 millones de dólares para transacciones de capped call y 384,4 millones de dólares para intercambiar aproximadamente 383,7 millones de dólares de notas convertibles existentes al 2,125% con vencimiento en 2028.
Las notas serán convertibles a una tasa inicial de 6,6243 acciones por cada 1.000 dólares de valor nominal, equivalente a un precio de conversión de 150,96 dólares por acción, lo que representa una prima del 27,5% sobre el precio de cierre del 13 de marzo de 2025 de 118,40 dólares.
Integer Holdings (NYSE: ITGR)는 2030년 만기 8억 7500만 달러의 전환 우선채권 가격을 발표했으며, 이는 이전에 발표된 7억 5000만 달러에서 증가한 것입니다. 이 채권은 1.875%의 이자율을 가지며 2030년 3월 15일에 만기됩니다.
회사는 약 8억 5390만 달러의 순수익을 예상하고 있으며 (초기 구매자가 추가 채권 옵션을 행사할 경우 9억 7610만 달러에 해당함), Integer는 약 6210만 달러를 캡드 콜 거래에 사용하고 3억 8440만 달러를 사용하여 약 3억 8370만 달러의 기존 2.125% 전환 우선채권(2028년 만기)을 교환할 것입니다.
채권은 1,000달러의 원금에 대해 6.6243주의 초기 비율로 전환 가능하며, 이는 주당 150.96달러의 전환 가격에 해당하며, 2025년 3월 13일의 종가인 118.40달러에 비해 27.5%의 프리미엄을 나타냅니다.
Integer Holdings (NYSE: ITGR) a annoncé le prix de 875,0 millions de dollars d'obligations senior convertibles arrivant à échéance en 2030, augmenté par rapport aux 750,0 millions de dollars précédemment annoncés. Les obligations porteront un taux d'intérêt de 1,875% et arriveront à échéance le 15 mars 2030.
L'entreprise s'attend à des produits nets d'environ 853,9 millions de dollars (ou 976,1 millions de dollars si les acheteurs initiaux exercent leur option d'obligations supplémentaires). Integer utilisera environ 62,1 millions de dollars pour des transactions de capped call et 384,4 millions de dollars pour échanger environ 383,7 millions de dollars d'obligations convertibles existantes à 2,125% arrivant à échéance en 2028.
Les obligations seront convertibles à un taux initial de 6,6243 actions pour 1.000 dollars de montant nominal, équivalent à un prix de conversion de 150,96 dollars par action, représentant une prime de 27,5% par rapport au prix de clôture du 13 mars 2025 de 118,40 dollars.
Integer Holdings (NYSE: ITGR) hat die Preisgestaltung von 875,0 Millionen Dollar an wandelbaren vorrangigen Anleihen mit Fälligkeit im Jahr 2030 bekannt gegeben, erhöht von zuvor angekündigten 750,0 Millionen Dollar. Die Anleihen werden einen Zinssatz von 1,875% tragen und am 15. März 2030 fällig werden.
Das Unternehmen erwartet Nettomittel in Höhe von etwa 853,9 Millionen Dollar (oder 976,1 Millionen Dollar, wenn die ursprünglichen Käufer ihre Option auf zusätzliche Anleihen ausüben). Integer wird etwa 62,1 Millionen Dollar für capped call Transaktionen und 384,4 Millionen Dollar verwenden, um etwa 383,7 Millionen Dollar bestehender 2,125% wandelbarer Anleihen mit Fälligkeit 2028 zu tauschen.
Die Anleihen werden zu einem anfänglichen Satz von 6,6243 Aktien pro 1.000 Dollar Nennwert wandelbar sein, was einem Umwandlungspreis von 150,96 Dollar pro Aktie entspricht, der einen Aufschlag von 27,5% gegenüber dem Schlusskurs vom 13. März 2025 von 118,40 Dollar darstellt.
- Successfully upsized offering from $750M to $875M, indicating strong investor demand
- Lower interest rate of 1.875% compared to existing 2.125% notes being exchanged
- Capped call transactions implemented to reduce potential dilution for shareholders
- Potential dilution for shareholders if notes are converted to common stock
- Increased long-term debt obligation with $875M new notes
- Additional interest expense will impact future earnings
Insights
Integer's $875 million convertible senior notes offering (upsized from $750 million) represents a strategic debt refinancing and capital raising initiative that accomplishes several financial objectives simultaneously. The
The company has structured this transaction with careful attention to potential dilution concerns by implementing capped call transactions at a
The conversion price of
This transaction improves Integer's debt profile by reducing interest expense and extending maturities from 2028 to 2030 while providing additional financial flexibility. The upsizing suggests strong market demand for the company's debt, a positive signal about investor confidence in Integer's creditworthiness.
PLANO, Texas, March 13, 2025 (GLOBE NEWSWIRE) -- Integer Holdings Corporation (the “Company,” “Integer”) (NYSE: ITGR) today announced that it has priced an offering of
The Company granted to the initial purchasers of the Convertible Notes an option to purchase up to an additional
In connection with the pricing of the Convertible Notes, the Company has entered into privately negotiated capped call transactions with certain of the initial purchasers of the Convertible Notes or their affiliates and certain other financial institutions (the “option counterparties”). The cap price of the capped call transactions will initially be
The Company anticipates that the aggregate net proceeds from the offering will be approximately
Concurrently with the pricing of the Convertible Notes, the Company entered into privately negotiated transactions (the “note exchange transactions”) to exchange approximately
The Company intends to use the remainder of the net proceeds from the offering, if any, to repay borrowings and any accrued and unpaid interest under the Company’s credit agreement, and any prepayment premium, penalty or other amount, if any, due in connection with such repayment, and for general corporate purposes.
The Convertible Notes will be senior unsecured obligations of the Company and will accrue interest at a rate of
The Company may not redeem the Convertible Notes prior to March 20, 2028. The Company may redeem for cash all or any portion of the Convertible Notes, at its option, on or after March 20, 2028, if the last reported sale price of the Company’s common stock has been at least
If the Company undergoes a fundamental change (as defined in the indenture governing the Convertible Notes), subject to certain conditions, holders may require the Company to repurchase for cash all or part of their Convertible Notes at a repurchase price equal to
The capped call transactions are expected generally to reduce potential dilution to the Company’s common stock upon conversion of any Convertible Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted Convertible Notes, as the case may be, with such reduction and/or offset subject to a cap.
In connection with establishing their initial hedges of the capped call transactions, the Company expects the option counterparties or their respective affiliates to purchase shares of the Company’s common stock and/or enter into various derivative transactions with respect to the Company’s common stock concurrently with or shortly after the pricing of the Convertible Notes. This activity could increase (or reduce the size of any decrease in) the market price of the Company’s common stock or the Convertible Notes at that time. In addition, the option counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to the Company’s common stock and/or purchasing or selling shares of the Company’s common stock or other securities of the Company in secondary market transactions following the pricing of the Convertible Notes and prior to the maturity of the Convertible Notes (and are likely to do so on each exercise date for the capped call transactions or following any termination of any portion of the capped call transactions in connection with any repurchase, redemption or early conversion of the Convertible Notes). This activity could also cause or avoid an increase or decrease in the market price of the Company’s common stock or the Convertible Notes, which could affect holders of the Convertible Notes’ ability to convert the Convertible Notes and, to the extent the activity occurs following conversion of the Convertible Notes or during any observation period related to a conversion of the Convertible Notes, it could affect the amount and value of the consideration that holders of the Convertible Notes will receive upon conversion of such Convertible Notes.
In connection with the note exchange transactions, the Company expects that holders of the Existing Convertible Notes who have agreed to have their Existing Convertible Notes exchanged and who have hedged their equity price risk with respect to such notes (the “hedged holders”) will unwind all or part of their hedge positions by buying the Company’s common stock and/or entering into or unwinding various derivative transactions with respect to the Company’s common stock. The amount of the Company’s common stock to be purchased by the hedged holders or the notional number of shares of the Company’s common stock underlying such derivative transactions may be substantial in relation to the historic average daily trading volume of the Company’s common stock. This activity by the hedged holders could increase (or reduce the size of any decrease in) the market price of the Company’s common stock, including concurrently with the pricing of the Convertible Notes, resulting in a higher effective conversion price of the Convertible Notes. The Company cannot predict the magnitude of such market activity or the overall effect it will have on the price of the Convertible Notes or the Company’s common stock and the corresponding effect on the initial conversion price of the Convertible Notes.
In connection with the issuance of the Existing Convertible Notes, the Company entered into capped call transactions (the “existing option transactions”) with certain financial institutions (the “existing option counterparties”). In connection with the note exchange transactions, the Company has entered into agreements with the existing option counterparties to terminate a portion of the existing option transactions in a notional amount corresponding to the amount of Existing Convertible Notes exchanged. Such termination will be settled through the delivery of the Company’s common stock by the existing option counterparties to the Company. In connection with such terminations of the existing option transactions, the Company expects such existing option counterparties and/or their respective affiliates will enter into or unwind various derivatives with respect to the Company’s common stock and/or buy or sell shares of the Company’s common stock concurrently with or shortly after the pricing of the Convertible Notes. This activity could increase (or reduce the size of any decrease in) or decrease (or reduce the size of any increase in) the market price of the Company’s common stock, including concurrently with the pricing of the Convertible Notes, which could affect the conversion price of the Convertible Notes. The Company cannot predict the magnitude of such market activity or the overall effect it will have on the price of the Convertible Notes or the Company’s common stock and the corresponding effect it has had on the initial conversion price of the Convertible Notes.
The Convertible Notes, any shares of the Company’s common stock issuable upon conversion of the Convertible Notes, if any, and the shares of the Company’s common stock issued in the note exchange transactions will not be registered under the Securities Act, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act and any applicable state securities laws. The Convertible Notes were offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A under the Securities Act.
This press release does not constitute an offer to sell, or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. This press release does not constitute an offer to exchange the Existing Convertible Notes.
About Integer®
Integer Holdings Corporation (NYSE: ITGR) is one of the largest medical device contract development and manufacturing organizations (CDMO) in the world, serving the cardiac rhythm management, neuromodulation, and cardio and vascular markets. As a strategic partner of choice to medical device companies and OEMs, the Company is committed to enhancing the lives of patients worldwide by providing innovative, high-quality products and solutions. The Company's brands include Greatbatch Medical® and Lake Region Medical®.
Investor Relations:
Kristen Stewart
551.337.3973
kristen.stewart@integer.net
Media Relations:
Kelly Butler
469.731.6617
kelly.butler@integer.net
Forward-Looking Statements
Some of the statements contained in this press release are “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby under the Private Securities Litigation Reform Act of 1995. The Company has based these forward-looking statements on its current expectations, and these statements are subject to known and unknown risks, uncertainties and assumptions. Forward-looking statements include, but are not limited to, statements relating to the offering, the use of net proceeds from the offering, the capped call transactions, the note exchange transactions and the termination of existing option transactions.
You can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “forecast,” “outlook,” “assume,” “potential” or “continue” or variations or the negative counterparts of these terms or other comparable terminology. These statements are only predictions and are no guarantee of future performance, and investors should not place undue reliance on forward-looking statements as predictive of future results. Actual events or results may differ materially from those stated or implied by these forward-looking statements. In evaluating these statements and the Company’s prospects, you should carefully consider the factors set forth below. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary factors. The Company disclaims any obligation to publicly update or revise the forward-looking statements made in this press release as a result of new information, future events or otherwise, except as required by law.
While it is not possible to create a comprehensive list of all factors that may cause actual results to differ from results expressed or implied by such forward-looking statements or that may affect the Company’s future results, some of these factors and other risks and uncertainties that arise from time to time are described in Item 1A “Risk Factors” of the Company’s Annual Report on Form 10-K and in its other periodic filings with the SEC and include the following:
- operational risks, such as the Company’s dependence upon a limited number of customers; pricing pressures and contractual pricing restraints the Company faces from customers; its reliance on third-party suppliers for raw materials, key products and subcomponents; interruptions in its manufacturing operations; its ability to attract, train and retain a sufficient number of qualified associates to maintain and grow its business; the potential for harm to its reputation and competitive advantage caused by quality problems related to its products; its dependence upon its information technology systems and its ability to prevent cyber-attacks and other failures; global climate change and the emphasis on environmental, social and governance matters by various stakeholders; its dependence upon its senior management team and key technical personnel; and consolidation in the healthcare industry resulting in greater competition;
- strategic risks, such as the intense competition the Company faces and its ability to successfully market its products; its ability to respond to changes in technology; its ability to develop new products and expand into new geographic and product markets; and its ability to successfully identify, make and integrate acquisitions to expand and develop its business in accordance with expectations;
- financial and indebtedness risks, such as the Company’s ability to accurately forecast future performance based on operating results that often fluctuate; its significant amount of outstanding indebtedness and its ability to remain in compliance with financial and other covenants under the credit agreement governing its senior secured credit facilities;
- economic and credit market uncertainties that could interrupt the Company’s access to capital markets, borrowings or financial transactions; the conditional conversion feature of the Existing Convertible Notes or the Convertible Notes adversely impacting its liquidity; the conversion of the Existing Convertible Notes or the Convertible Notes diluting ownership interests of existing holders of the Company’s common stock; the counterparty risk associated with the capped call transactions and the existing option transactions; the financial and market risks related to its international operations and sales; its complex international tax profile; and its ability to realize the full value of its intangible assets;
- legal and compliance risks, such as regulatory issues resulting from product complaints, recalls or regulatory audits; the potential of becoming subject to product liability or intellectual property claims; the Company’s ability to protect its intellectual property and proprietary rights; its ability to comply with customer-driven policies and third-party standards or certification requirements; its ability to obtain and/or retain necessary licenses from third parties for new technologies; its ability and the cost to comply with environmental regulations; legal and regulatory risks from its international operations; the fact that the healthcare industry is highly regulated and subject to various regulatory changes; and its business being indirectly subject to healthcare industry cost containment measures that could result in reduced sales of its products.
FAQ
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