Omnicell Announces Pricing of $150 Million Convertible Senior Notes Offering
Omnicell has announced the pricing of $150 million of 1.00% Convertible Senior Notes due 2029. The notes will mature on December 1, 2029, with interest payable semiannually at 1.00% per annum. The initial conversion rate is 17.4662 shares per $1,000 principal amount, equivalent to $57.25 per share. The company expects net proceeds of approximately $144.2 million, which will be used to repurchase $400 million of existing 2025 notes and fund convertible note hedge transactions. The offering includes additional options for purchasers and various hedging arrangements to manage potential dilution.
Omnicell ha annunciato la quotazione di 150 milioni di dollari di Obbligazioni Convertibili Senior con un tasso di interesse dell'1.00% in scadenza nel 2029. Le obbligazioni scadranno il 1° dicembre 2029, con interessi pagabili semestralmente all'1.00% annuo. Il tasso di conversione iniziale è di 17.4662 azioni per ogni 1.000 dollari di valore nominale, pari a 57,25 dollari per azione. L'azienda prevede un ricavo netto di circa 144,2 milioni di dollari, che verranno utilizzati per riacquistare obbligazioni esistenti da 400 milioni di dollari con scadenza nel 2025 e finanziare operazioni di copertura per obbligazioni convertibili. L'offerta include opzioni aggiuntive per gli acquirenti e vari accordi di copertura per gestire la potenziale diluizione.
Omnicell ha anunciado la fijación de precios de 150 millones de dólares de Notas Convertibles Senior al 1.00% que vencerán en 2029. Las notas vencerán el 1 de diciembre de 2029, con intereses pagaderos semestralmente al 1.00% anual. La tasa de conversión inicial es de 17.4662 acciones por cada 1,000 dólares de monto principal, equivalente a 57.25 dólares por acción. La compañía espera ingresos netos de aproximadamente 144.2 millones de dólares, que se utilizarán para recomprar notas existentes por 400 millones de dólares que vencen en 2025 y financiar transacciones de cobertura de notas convertibles. La oferta incluye opciones adicionales para los compradores y varios acuerdos de cobertura para manejar la posible dilución.
Omnicell은 2029년 만기 1.00% 전환 가능한 선순위 채권 1억 5천만 달러의 가격을 발표했습니다. 이 채권은 2029년 12월 1일에 만기되며, 연 1.00%의 이자는 반기별로 지급됩니다. 초기 전환 비율은 1,000달러의 원금에 대해 17.4662주로, 이는 주당 57.25달러에 해당합니다. 회사는 약 1억 4천 4백 20만 달러의 순수익이 발생할 것으로 예상하며, 이는 2025년 만기 기존 채권 4억 달러를 재구매하고 전환 채권 헤지 거래에 사용될 예정입니다. 이번 공모에는 매수자에 대한 추가 옵션과 잠재적 희석을 관리하기 위한 다양한 헤지 계약이 포함되어 있습니다.
Omnicell a annoncé la tarification de 150 millions de dollars d'Obligations Convertibles Senior à 1.00% arrivant à échéance en 2029. Les obligations arriveront à échéance le 1er décembre 2029, avec des intérêts payables semestriellement à 1.00% par an. Le taux de conversion initial est de 17.4662 actions pour 1 000 dollars de montant nominal, ce qui équivaut à 57,25 dollars par action. La société s'attend à des recettes nettes d'environ 144,2 millions de dollars, qui seront utilisées pour racheter des obligations existantes de 400 millions de dollars arrivant à échéance en 2025 et pour financer des transactions de couverture d'obligations convertibles. L'offre comprend des options supplémentaires pour les acheteurs et divers arrangements de couverture pour gérer la dilution potentielle.
Omnicell hat die Preisgestaltung von 150 Millionen US-Dollar für 1,00% konvertierbare Senior-Anleihen mit Fälligkeit im Jahr 2029 angekündigt. Die Anleihen laufen am 1. Dezember 2029 aus, wobei die Zinsen halbjährlich zu 1,00% pro Jahr gezahlt werden. Der anfängliche Umtauschkurs beträgt 17,4662 Aktien pro 1.000 US-Dollar Nennbetrag, was 57,25 US-Dollar pro Aktie entspricht. Das Unternehmen erwartet Nettoeinnahmen von etwa 144,2 Millionen US-Dollar, die verwendet werden sollen, um bestehende Anleihen von 400 Millionen US-Dollar mit Fälligkeit im Jahr 2025 zurückzukaufen und Transaktionen zur Absicherung von Wandelanleihen zu finanzieren. Das Angebot umfasst zusätzliche Optionen für Käufer und verschiedene Absicherungsmöglichkeiten zur Verwaltung potentieller Verwässerungen.
- Successful pricing of $150 million convertible notes offering
- Low interest rate of 1.00% per annum on the new notes
- Implementation of convertible note hedge transactions to reduce potential dilution
- Taking on $150 million in new debt obligations
- Potential dilution risk for shareholders if notes are converted
- Additional financial burden from interest payments
Insights
This
The convertible note hedge and warrant transactions are designed to minimize dilution and protect shareholders. However, the higher interest rate on the new notes and the cash needed for the transaction (
The notes will be senior unsecured obligations of Omnicell and will accrue interest payable semiannually in arrears on June 1 and December 1 of each year, beginning on June 1, 2025 at a rate of
Omnicell estimates that the net proceeds from the offering will be approximately
Noteholders may convert their notes at their option at any time prior to the close of business on the business day immediately preceding August 1, 2029 only upon the occurrence of certain circumstances. On or after August 1, 2029 until the close of business on the second scheduled trading day immediately preceding the maturity date, noteholders may convert all or any portion of their notes at any time.
Upon conversion, Omnicell will pay cash up to the aggregate principal amount of the notes to be converted and pay or deliver, as the case may be, cash, shares of Omnicell’s common stock or a combination of cash and shares of Omnicell’s common stock, at Omnicell’s election, in respect of the remainder, if any, of Omnicell’s conversion obligation in excess of the aggregate principal amount of the notes being converted. The conversion rate will initially be 17.4662 shares of Omnicell’s common stock per
Omnicell may not redeem the notes prior to December 6, 2027. Omnicell may redeem for cash all or any portion of the notes (subject to certain limitations), at Omnicell’s option, on or after December 6, 2027 if the last reported sale price of Omnicell’s common stock has been at least
If Omnicell undergoes a fundamental change (as defined in the indenture that will govern the notes), then, subject to certain conditions and limited exceptions, noteholders may require Omnicell to repurchase for cash all or any portion of their notes at a fundamental change repurchase price equal to
In connection with the pricing of the notes, Omnicell entered into convertible note hedge transactions with certain of the initial purchasers or their affiliates and certain other financial institutions (the “option counterparties”). Omnicell also entered into warrant transactions with the option counterparties. The convertible note hedge transactions are expected generally to reduce the potential dilution to Omnicell’s common stock upon any conversion of notes and/or offset any cash payments Omnicell is required to make in excess of the principal amount of converted notes, as the case may be. However, the warrant transactions could separately have a dilutive effect on Omnicell’s common stock to the extent that the market price per share of Omnicell’s common stock exceeds the strike price of the warrants. The strike price of the warrant transactions will initially be
In connection with establishing their initial hedges of the convertible note hedge and warrant transactions, Omnicell expects the option counterparties or their respective affiliates to enter into various derivative transactions with respect to Omnicell’s common stock and/or purchase shares of Omnicell’s common stock concurrently with or shortly after the pricing of the notes. This activity could increase (or reduce the size of any decrease in) the market price of Omnicell’s common stock or the 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 Omnicell’s common stock and/or purchasing or selling Omnicell’s common stock or other securities of Omnicell in secondary market transactions following the pricing of the notes and prior to the maturity of the notes (and are likely to do so in connection with any conversion, redemption or repurchase of the notes). This activity could also cause or avoid an increase or a decrease in the market price of Omnicell’s common stock or the notes, which could affect a noteholder’s ability to convert the notes and, to the extent the activity occurs during any observation period related to a conversion of notes, it could affect the number of shares of Omnicell’s common stock, if any, and value of the consideration, if any, that a noteholder will receive upon conversion of the notes.
Concurrently with the pricing of the notes in the offering, Omnicell entered into separate and individually negotiated transactions with certain holders of the 2025 notes to repurchase for approximately
Omnicell expects that holders of the 2025 notes that are repurchased by Omnicell as described above may enter into or unwind various derivatives with respect to Omnicell’s common stock (including entering into derivatives with one or more of the initial purchasers in the offering or their respective affiliates) and/or purchase or sell shares of Omnicell’s common stock concurrently with or shortly after the pricing of the notes. In connection with the issuance of the 2025 notes, Omnicell entered into convertible note hedge transactions (the “existing convertible note hedge transactions”) and warrant transactions (the “existing warrant transactions” and, together with the existing convertible note hedge transactions, the “existing call spread transactions”) with one of their initial purchasers and certain financial institutions (the “existing counterparties”). In connection with the note repurchases, Omnicell expects to enter into agreements with the existing counterparties to unwind a portion of the existing convertible note hedge transactions in a notional amount corresponding to the principal amount of the 2025 notes so repurchased. In addition, Omnicell expects to enter into agreements with the existing counterparties to unwind a portion of the existing warrant transactions with respect to a number of shares of Omnicell’s common stock equal to the notional shares underlying such 2025 notes so repurchased.
In connection with such expected terminations and the related unwinding of the existing hedge position of the existing counterparties with respect to such transactions, such existing counterparties and/or their respective affiliates may sell shares of Omnicell’s common stock in secondary market transactions and/or unwind various derivative transactions with respect to Omnicell’s common stock concurrently with or shortly after the pricing of the notes.
The repurchases of the 2025 notes and the expected unwind of the existing call spread transactions described above, and the potential related market activities by holders of the 2025 notes that are repurchased and the existing counterparties, as applicable, could increase (or reduce the size of any decrease in) or decrease (or reduce the size of any increase in) the market price of Omnicell’s common stock, which may affect the trading price of the notes offered in the offering at that time and, to the extent effected concurrently with the pricing of this offering, the initial conversion price of the notes. Omnicell cannot predict the magnitude of such market activity or the overall effect it will have on the price of the notes offered in the offering or its common stock. Neither the notes, nor the shares of Omnicell’s common stock issuable upon conversion of the notes, if any, have been, or will be, registered under the Securities Act or any state securities laws, and unless so registered, may not be offered or sold in
This press release is neither an offer to sell nor a solicitation of an offer to buy any securities, nor shall it constitute an offer to sell, solicitation of an offer to buy or sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
About Omnicell
Since 1992, Omnicell has been committed to transforming pharmacy care through outcomes-centric innovation designed to optimize clinical and business outcomes across all settings of care. Through a comprehensive portfolio of robotics, smart devices, intelligent software, and expert services, Omnicell solutions are helping healthcare facilities worldwide to reduce costs, improve labor efficiency, establish new revenue streams, enhance supply chain control, support compliance, and move closer to the industry vision of the Autonomous Pharmacy.
Forward-Looking Statements
This press release contains “forward-looking” statements that involve risks and uncertainties, including statements concerning the closing of the offering of the notes, the convertible note hedge and warrant transactions, the note repurchases and the unwind of the existing call spread transactions, the anticipated use of proceeds from the offering, including the note repurchases, and the potential impact of the foregoing or related transactions on dilution to holders of Omnicell’s common stock, and the market price of Omnicell’s common stock or the notes. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from Omnicell’s plans. These risks include, but are not limited to, market risks, trends and conditions, Omnicell’s ability to complete the offering, the convertible note hedge and warrant transactions, the note repurchases and/or the unwind of the existing call spread transactions, on the expected terms, or at all, whether Omnicell will be able to satisfy closing conditions related to the offering, the convertible note hedge and warrant transactions, the note repurchases and/or the unwind of the existing call spread transactions, unanticipated uses of capital and those risks included in the section titled “Risk Factors” in Omnicell’s Securities and Exchange Commission (“SEC”) filings and reports, including its Annual Report on Form 10-K for the year ended December 31, 2023 and other filings that Omnicell makes from time to time with the SEC, which are available on the SEC’s website at www.sec.gov. All forward-looking statements contained in this press release speak only as of the date on which they were made. Omnicell undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.
OMCL-E
View source version on businesswire.com: https://www.businesswire.com/news/home/20241119175512/en/
Kathleen Nemeth
Senior Vice President, Investor Relations
650-435-3318
Kathleen.Nemeth@omnicell.com
Source: Omnicell, Inc.
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