Integer Holdings Corporation Enhances Capitalization Structure with the Closing of $1.0 Billion Convertible Senior Notes Offering
Integer Holdings (NYSE: ITGR) has successfully closed a $1.0 billion convertible senior notes offering due 2030, with a 1.875% interest rate. The offering was upsized from the initial $750 million due to strong investor demand, with initial purchasers exercising their option for an additional $125 million.
The company expects net proceeds of $976.1 million after expenses, which will be used to pay for capped call transactions, exchange existing convertible notes, and repay revolving credit facility and term A loan borrowings. The transaction is projected to generate $12 million in interest expense savings for 2025.
The notes' conversion structure includes cash payment for the principal amount and protection against dilution through capped call transactions, setting an effective conversion price of $189.44, representing a 60% premium over the March 13, 2025 closing stock price of $118.40.
Integer Holdings (NYSE: ITGR) ha chiuso con successo un'offerta di note senior convertibili da 1,0 miliardi di dollari in scadenza nel 2030, con un tasso d'interesse dell'1,875%. L'offerta è stata aumentata rispetto ai 750 milioni di dollari iniziali a causa della forte domanda degli investitori, con i compratori iniziali che hanno esercitato l'opzione per ulteriori 125 milioni di dollari.
L'azienda prevede proventi netti di 976,1 milioni di dollari dopo le spese, che saranno utilizzati per pagare le transazioni di capped call, scambiare note convertibili esistenti e rimborsare i prestiti della linea di credito revolving e del prestito di tipo A. Si prevede che la transazione genererà risparmi di spese per interessi di 12 milioni di dollari per il 2025.
La struttura di conversione delle note include un pagamento in contante per l'importo principale e protezione contro la diluizione tramite transazioni di capped call, fissando un prezzo di conversione effettivo di 189,44 dollari, che rappresenta un premio del 60% rispetto al prezzo di chiusura delle azioni del 13 marzo 2025 di 118,40 dollari.
Integer Holdings (NYSE: ITGR) ha cerrado con éxito una oferta de notas senior convertibles de 1.0 mil millones de dólares con vencimiento en 2030, con una tasa de interés del 1.875%. La oferta se amplió desde los 750 millones de dólares iniciales debido a la fuerte demanda de los inversores, con los compradores iniciales ejerciendo su opción por 125 millones de dólares adicionales.
La compañía espera ingresos netos de 976.1 millones de dólares después de gastos, que se utilizarán para pagar transacciones de capped call, intercambiar notas convertibles existentes y reembolsar préstamos de línea de crédito rotativa y de préstamo tipo A. Se proyecta que la transacción genere ahorros en gastos de intereses de 12 millones de dólares para 2025.
La estructura de conversión de las notas incluye un pago en efectivo por el monto principal y protección contra la dilución a través de transacciones de capped call, estableciendo un precio de conversión efectivo de 189.44 dólares, lo que representa una prima del 60% sobre el precio de cierre de las acciones del 13 de marzo de 2025 de 118.40 dólares.
Integer Holdings (NYSE: ITGR)는 2030년 만기 10억 달러 규모의 전환형 선순위 채권 발행을 성공적으로 마감했으며, 이자율은 1.875%입니다. 이 발행은 투자자 수요가 강해 초기 7억 5천만 달러에서 확대되었으며, 초기 구매자들이 추가로 1억 2천 5백만 달러의 옵션을 행사했습니다.
회사는 비용을 제외하고 9억 7천 6백 10만 달러의 순수익을 예상하고 있으며, 이는 capped call 거래 비용, 기존 전환 채권 교환, 회전 신용 시설 및 A형 대출 상환에 사용될 것입니다. 이 거래는 2025년에 1천 2백만 달러의 이자 비용 절감 효과를 가져올 것으로 예상됩니다.
채권의 전환 구조는 원금에 대한 현금 지급과 capped call 거래를 통한 희석 방지를 포함하며, 189.44 달러의 유효 전환 가격을 설정하여 2025년 3월 13일의 주가 118.40 달러에 대해 60%의 프리미엄을 나타냅니다.
Integer Holdings (NYSE: ITGR) a réussi à clore une offre de billets convertibles senior de 1,0 milliard de dollars arrivant à échéance en 2030, avec un taux d'intérêt de 1,875%. L'offre a été augmentée par rapport aux 750 millions de dollars initiaux en raison d'une forte demande des investisseurs, les acheteurs initiaux ayant exercé leur option pour un montant supplémentaire de 125 millions de dollars.
L'entreprise s'attend à des produits nets de 976,1 millions de dollars après dépenses, qui seront utilisés pour financer des transactions de capped call, échanger des billets convertibles existants et rembourser des emprunts de crédit renouvelable et des prêts de type A. La transaction devrait générer 12 millions de dollars d'économies sur les frais d'intérêt pour 2025.
La structure de conversion des billets comprend un paiement en espèces pour le montant principal et une protection contre la dilution via des transactions de capped call, fixant un prix de conversion effectif de 189,44 dollars, représentant une prime de 60% par rapport au prix de clôture de l'action du 13 mars 2025 de 118,40 dollars.
Integer Holdings (NYSE: ITGR) hat erfolgreich ein 1,0 Milliarden Dollar großes Angebot an wandelbaren vorrangigen Anleihen mit Fälligkeit im Jahr 2030 und einem Zinssatz von 1,875% abgeschlossen. Das Angebot wurde aufgrund der starken Nachfrage der Investoren von ursprünglich 750 Millionen Dollar aufgestockt, wobei die ursprünglichen Käufer ihre Option auf zusätzliche 125 Millionen Dollar ausgeübt haben.
Das Unternehmen erwartet netto Einnahmen von 976,1 Millionen Dollar nach Kosten, die zur Finanzierung von capped call Transaktionen, zum Austausch bestehender wandelbarer Anleihen und zur Rückzahlung von revolvierenden Kreditfazilitäten und Terminkrediten verwendet werden. Die Transaktion soll 12 Millionen Dollar an Zinskostenersparnissen für 2025 generieren.
Die Umwandlungsstruktur der Anleihen umfasst eine Barzahlung des Nennbetrags und Schutz gegen Verwässerung durch capped call Transaktionen, was einen effektiven Umwandlungspreis von 189,44 Dollar festlegt, was eine Prämie von 60% über dem Schlusskurs der Aktie am 13. März 2025 von 118,40 Dollar darstellt.
- Secured $1.0 billion in financing at favorable 1.875% interest rate
- Expected $12 million reduction in interest expenses for 2025
- Strong investor demand led to upsizing of offering from $750M to $1.0B
- Anti-dilution protection through capped call transactions with 60% conversion premium
- Potential future dilution risk if stock price exceeds conversion price of $189.44
- Increased total debt load with new $1.0 billion notes offering
Insights
Integer Holdings' $1 billion convertible notes offering represents a strategic refinancing that strengthens the company's financial position. The deal features a
The transaction's financial impact is immediately positive, expected to reduce annual interest expenses by approximately
Most importantly, this refinancing creates significant revolver capacity, providing Integer with enhanced financial flexibility to pursue its tuck-in acquisition strategy - a core driver of their growth plan. The structure includes sophisticated anti-dilution measures through capped call transactions that effectively raise the conversion price to
The
~ Strategic transaction to create revolver capacity ~
~ Immediately accretive to 2025 adjusted earnings on meaningfully lower interest expense ~
PLANO, Texas, March 18, 2025 (GLOBE NEWSWIRE) -- Integer Holdings Corporation (the “Company”) (NYSE: ITGR), a leading medical device contract development and manufacturing organization, announces the closing of its offering of
“This transaction creates revolver capacity to enable us to continue executing our strategy while reducing our interest costs by meaningfully increasing the percentage of our debt at substantially lower interest rates,” said Joe Dziedzic, president and CEO. “We believe the strong demand from investors for this convertible bond offering demonstrates investors’ confidence in Integer’s strategy and financial strength.”
“This transaction is expected to be immediately accretive to 2025 adjusted earnings from lower interest expense of approximately
The Company estimates that the aggregate net proceeds from this offering will be
Upon conversion, the principal amount of the Notes will be paid in cash. As a result of the related capped call transactions, dilution upon a conversion of the Notes will be mitigated by the increased effective conversion price of the Notes to
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 regarding expected impact of the offering on 2025 adjusted earnings, relating to the offering, the use of net proceeds from the offering, the capped call transactions, and the note exchange 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 Notes adversely impacting its liquidity; the conversion of the Existing Convertible Notes or the 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 entered into in connection with the Existing Convertible Notes; 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
What is the interest rate and maturity of Integer Holdings' new convertible notes offering?
How much will ITGR save in interest expenses from this new financing?
What is the conversion price premium for ITGR's new convertible notes?
How will ITGR use the proceeds from the $1 billion convertible notes offering?
