Semler Scientific® Announces Pricing of Upsized Offering of $85.0 Million Convertible Senior Notes
Semler Scientific (NASDAQ: SMLR) has announced the pricing of $85.0 million in 4.25% convertible senior notes due 2030, an increase from the previously announced $75.0 million. The notes, offered to qualified institutional buyers, will mature on August 1, 2030, with semiannual interest payments beginning August 1, 2025.
The initial conversion rate is 13.0826 shares per $1,000 principal amount, equivalent to approximately $76.44 per share, representing a 25% premium over the last reported stock price. The company expects net proceeds of approximately $81.4 million, with $6.6 million allocated to capped call transactions and the remainder for general corporate purposes, including bitcoin acquisition.
The company has implemented capped call transactions with a cap price of $107.01, representing a 75% premium over the current stock price, to offset potential dilution from note conversions.
Semler Scientific (NASDAQ: SMLR) ha annunciato il prezzo di 85,0 milioni di dollari in obbligazioni senior convertibili al 4,25% con scadenza nel 2030, un aumento rispetto ai 75,0 milioni di dollari precedentemente annunciati. Le obbligazioni, offerte a compratori istituzionali qualificati, scadranno il 1 agosto 2030, con pagamenti semestrali degli interessi che inizieranno il 1 agosto 2025.
Il tasso di conversione iniziale è di 13,0826 azioni per ogni 1.000 dollari di valore nominale, equivalente a circa 76,44 dollari per azione, che rappresenta un premio del 25% rispetto all'ultimo prezzo delle azioni riportato. L'azienda prevede un ricavato netto di circa 81,4 milioni di dollari, con 6,6 milioni di dollari destinati a transazioni capped call e il resto per scopi aziendali generali, inclusa l'acquisizione di bitcoin.
L'azienda ha implementato transazioni capped call con un prezzo limite di 107,01 dollari, che rappresenta un premio del 75% rispetto al prezzo attuale delle azioni, per compensare la potenziale diluizione derivante dalle conversioni delle obbligazioni.
Semler Scientific (NASDAQ: SMLR) ha anunciado el precio de 85,0 millones de dólares en notas senior convertibles al 4,25% con vencimiento en 2030, un aumento de los 75,0 millones de dólares previamente anunciados. Las notas, ofrecidas a compradores institucionales calificados, madurarán el 1 de agosto de 2030, con pagos de intereses semestrales que comenzarán el 1 de agosto de 2025.
La tasa de conversión inicial es de 13,0826 acciones por cada 1.000 dólares de monto principal, equivalente a aproximadamente 76,44 dólares por acción, lo que representa una prima del 25% sobre el último precio de las acciones reportado. La compañía espera ingresos netos de aproximadamente 81,4 millones de dólares, con 6,6 millones de dólares asignados a transacciones capped call y el resto para fines corporativos generales, incluida la adquisición de bitcoin.
La empresa ha implementado transacciones capped call con un precio límite de 107,01 dólares, que representa una prima del 75% sobre el precio actual de las acciones, para compensar la posible dilución de las conversiones de notas.
Semler Scientific (NASDAQ: SMLR)는 8,500만 달러의 4.25% 전환형 선순위 채권(2030년 만기)의 가격을 발표했으며, 이는 이전에 발표된 7,500만 달러에서 증가한 것입니다. 이 채권은 자격을 갖춘 기관 투자자에게 제공되며, 2030년 8월 1일에 만기가 도래하고, 이자 지급은 2025년 8월 1일부터 반기마다 이루어집니다.
초기 전환 비율은 1,000달러의 원금 당 13.0826주로, 주당 약 76.44달러에 해당하며, 이는 보고된 마지막 주가에 비해 25%의 프리미엄을 나타냅니다. 회사는 약 8140만 달러의 순수익을 예상하며, 이 중 660만 달러는 capped call 거래에 할당되고 나머지는 일반 기업 목적, 비트코인 인수 등을 위해 사용됩니다.
회사는 현재 주가에 비해 75%의 프리미엄을 나타내는 107.01달러의 가격 한도로 capped call 거래를 시행하여, 채권 전환으로 인한 잠재적 희석을 상쇄하고 있습니다.
Semler Scientific (NASDAQ: SMLR) a annoncé la fixation du prix de 85,0 millions de dollars en obligations convertibles senior à 4,25 % échéant en 2030, une augmentation par rapport aux 75,0 millions de dollars précédemment annoncés. Les obligations, offertes aux acheteurs institutionnels qualifiés, arriveront à échéance le 1er août 2030, avec des paiements d'intérêts semestriels commençant le 1er août 2025.
Le taux de conversion initial est de 13,0826 actions pour 1 000 dollars de montant nominal, ce qui équivaut à environ 76,44 dollars par action, représentant une prime de 25% par rapport au dernier prix de l'action rapporté. La société s'attend à un produit net d'environ 81,4 millions de dollars, dont 6,6 millions de dollars seront alloués aux transactions capped call et le reste pour des fins corporatives générales, y compris l'acquisition de bitcoin.
La société a mis en œuvre des transactions capped call avec un prix plafonné de 107,01 dollars, représentant une prime de 75% par rapport au prix actuel de l'action, afin de compenser la dilution potentielle résultant des conversions d'obligations.
Semler Scientific (NASDAQ: SMLR) hat die Preisfestsetzung von 85,0 Millionen Dollar für 4,25% wandelbare vorrangige Anleihen mit Fälligkeit im Jahr 2030 bekannt gegeben, was eine Erhöhung von den zuvor angekündigten 75,0 Millionen Dollar darstellt. Die Anleihen, die an qualifizierte institutionelle Käufer angeboten werden, haben eine Fälligkeit am 1. August 2030, mit halbjährlichen Zinszahlungen, die am 1. August 2025 beginnen.
Der anfängliche Umwandlungssatz beträgt 13,0826 Aktien pro 1.000 Dollar Nennbetrag, was etwa 76,44 Dollar pro Aktie entspricht und eine Prämie von 25% gegenüber dem zuletzt gemeldeten Aktienkurs darstellt. Das Unternehmen erwartet Nettoerlöse von etwa 81,4 Millionen Dollar, wobei 6,6 Millionen Dollar für capped call-Transaktionen und der Rest für allgemeine Unternehmenszwecke, einschließlich der Akquisition von Bitcoin, verwendet wird.
Das Unternehmen hat capped call-Transaktionen mit einem Höchstpreis von 107,01 Dollar umgesetzt, was eine Prämie von 75% gegenüber dem aktuellen Aktienkurs darstellt, um eine potenzielle Verwässerung durch die Umwandlungen der Anleihen auszugleichen.
- Successful upsizing of convertible note offering from $75M to $85M indicates strong investor interest
- Implementation of capped call transactions to minimize shareholder dilution
- Secured favorable 4.25% interest rate for 5-year convertible notes
- Potential dilution risk for shareholders if notes are converted to common stock
- Taking on $85M in debt could increase financial leverage and interest expense
- Allocation of proceeds to bitcoin acquisition introduces cryptocurrency market risk
Insights
The $85M convertible note offering from Semler Scientific presents a complex financial transaction with several noteworthy elements. The 4.25% interest rate appears relatively competitive in the current market environment, while the 25% conversion premium provides reasonable upside protection for existing shareholders.
The implementation of capped call transactions with a 75% premium cap demonstrates sophisticated financial engineering to protect against dilution. This structure effectively creates a synthetic collar, limiting potential share dilution while allowing for upside participation up to the cap price of
However, the most intriguing aspect is the company's stated intention to use part of the proceeds for bitcoin acquisition. This represents a significant shift in corporate treasury management strategy and introduces new risk factors. While bitcoin exposure could provide inflation hedging and potential appreciation, it also adds considerable volatility to the company's balance sheet.
The convertible note's terms are structured with investor-friendly features, including the ability to force conversion at a 130% premium after August 2028 and fundamental change protections. The 5.5-year maturity provides a reasonable timeframe for the company's growth initiatives while maintaining flexibility through the conversion features.
From a market perspective, the upsizing from
Key Elements of the Transaction
- Upsized
$85.0 million 4.25% convertible senior notes offering (25% conversion premium) - Capped call transactions entered into in connection with the offering with an initial cap price of approximately
$107.01 75% over the last reported sale price of the common stock on January 23, 2025
Additional Details of the Convertible Notes
The notes will be senior unsecured obligations of Semler Scientific and will accrue interest payable semiannually in arrears on February 1 and August 1 of each year, beginning on August 1, 2025, at a rate of
Semler Scientific may not redeem the notes prior to August 4, 2028. Semler Scientific may redeem for cash all or any portion of the notes (subject to certain limitations), at its option, on or after August 4, 2028 and prior to the 21st scheduled trading day immediately preceding the maturity date, if the last reported sale price of Semler Scientific's common stock has been at least
If Semler Scientific undergoes a "fundamental change" (as defined in the indenture that will govern the notes), then, subject to certain conditions and limited exceptions, holders may require Semler Scientific to repurchase for cash all or any portion of their notes at a repurchase price equal to
Use of Proceeds
Semler Scientific estimates that the net proceeds from the offering will be approximately
Capped Call Transactions
In connection with the pricing of the notes, Semler Scientific entered into privately negotiated capped call transactions (the "capped call transactions") with certain financial institutions (the "option counterparties"). The capped call transactions cover, subject to customary adjustments, the number of shares of Semler Scientific's common stock that will initially underlie the notes. The capped call transactions are expected to offset the potential dilution to Semler Scientific's common stock as a result of any conversion of notes, with such reduction subject to a cap. The cap price of the capped call transactions relating to the notes will initially be approximately
In connection with establishing their initial hedges of the capped call transactions, Semler Scientific expects that the option counterparties and/or their respective affiliates may enter into various derivative transactions with respect to its common stock and/or purchase its common stock in secondary market transactions concurrently with or shortly after the pricing of the notes, including with certain investors in the notes. This activity could increase (or reduce the size of any decrease in) the market price of Semler Scientific's common stock or the notes at that time.
In addition, Semler Scientific expects that the option counterparties and/or their respective affiliates may modify or unwind their hedge positions by entering into or unwinding various derivative transactions and/or purchasing or selling Semler Scientific's common stock or other securities of Semler Scientific in secondary market transactions following the pricing of the notes and prior to the maturity of the notes (and are likely to do so on each exercise date of the capped call transactions, which are scheduled to occur during the observation period relating to any conversion of the notes on or after May 1, 2030 that is not in connection with a redemption, or following Semler Scientific's election to terminate any portion of the capped call transactions in connection with any repurchase, redemption, exchange or early conversion of the notes). This activity could also cause or avoid an increase or a decrease in the market price of Semler Scientific's common stock or the notes, which could affect a noteholder's ability to convert its notes and, to the extent the activity occurs during any observation period related to a conversion of notes, it could affect the amount and value of the consideration that a noteholder will receive upon conversion of its notes.
Neither the notes, nor any shares of Semler Scientific's common stock issuable upon conversion of the notes, have been 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, solicitation 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 Semler Scientific
Semler Scientific, Inc. is a pioneer in developing and marketing technology products and services to healthcare providers to combat chronic diseases. Its flagship product, QuantaFlo®, which is patented and cleared by the
Forward-Looking Statements
This press release contains "forward-looking" statements. Such statements can be identified by, among other things, the use of forward-looking language such as the words "believe," "goal," "may," "will," "intend," "expect," "anticipate," "estimate," "project," "would," "could" or words with similar meaning or the negatives of these terms or by the discussion of strategy or intentions. The forward-looking statements in this release include express or implied statements about the closing of the offering of the notes and capped call transactions, the potential impact of the foregoing or related transactions on dilution to holders of our common stock, the market price of our common stock or the notes, and the anticipated use of proceeds from the offering. Such forward-looking statements are subject to a number of risks and uncertainties that could cause Semler Scientific's actual results to differ materially from those discussed here, including but not limited to whether we will consummate the offering of notes on the expected terms or at all, which could differ or change based upon market conditions or for other reasons, and the other risk factors detailed in Semler Scientific's filings with the Securities and Exchange Commission. These forward-looking statements involve assumptions, estimates, and uncertainties that reflect current internal projections, expectations or beliefs. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. All forward-looking statements contained in this press release are qualified in their entirety by these cautionary statements and the risk factors described above. Furthermore, all such statements are made as of the date of this press release and Semler Scientific assumes no obligation to update or revise these statements unless otherwise required by law.
Investor Relations Contact:
Renae Cormier
Chief Financial Officer
ir@semlerscientific.com
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SOURCE Semler Scientific, Inc.
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