SOC Telemed Announces Pricing of Public Offering of Class A Common Stock

Rhea-AI Summary

SOC Telemed (TLMD) has announced a public offering of 8,000,000 shares of Class A Common Stock at $6.00 per share, aiming for gross proceeds of approximately $48 million. The underwriters have a 30-day option to purchase an additional 1,200,000 shares. The closing of the offering is set for June 1, 2021. Proceeds will be primarily used to repay outstanding debt related to the acquisition of Access Physicians, with remaining funds allocated for working capital and general corporate needs.

Positive

• Expected gross proceeds of approximately $48 million will help in debt repayment and support working capital.
• The intention to repay debt may strengthen the company's financial position.

Negative

• The issuance of new shares could lead to shareholder dilution.

RESTON, Va., May 26, 2021 /PRNewswire/ -- SOC Telemed, Inc. (Nasdaq: TLMD), the largest national provider of acute care telemedicine, today announced the pricing of its previously announced underwritten public offering of 8,000,000 shares of its Class A Common Stock at a price to the public of $6.00 per share. In addition, SOC Telemed has granted the underwriters a 30-day option to purchase up to 1,200,000 additional shares of its Class A Common Stock at the public offering price, less the underwriting discounts and commissions. The aggregate gross proceeds to SOC Telemed from the offering are expected to be approximately $48.0 million, before deducting underwriting discounts and commissions and estimated offering expenses and assuming no exercise of the underwriters' option to purchase additional shares. All of the shares are being offered by SOC Telemed. The offering is expected to close on June 1, 2021, subject to customary closing conditions.

SOC Telemed intends to use the net proceeds from this offering to repay outstanding indebtedness under its term loan facility and subordinated note borrowed to fund its recent acquisition of Access Physicians, with any remaining net proceeds used for working capital and general corporate purposes.

Credit Suisse, William Blair and Guggenheim Securities are acting as joint book-running managers for the offering.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction to any person to whom it is unlawful to make an offer, solicitation or sale in such jurisdiction. A registration statement relating to these securities was filed with and declared effective by the Securities and Exchange Commission.

The offering is being made only by means of a prospectus. When available, copies of the final prospectus relating to the offering may be obtained by contacting: Credit Suisse Securities (USA) LLC, Attn: Prospectus Department, 6933 Louis Stephens Drive, Morrisville, NC 27560, by telephone at (800) 221-1037, or by email at usa.prospectus@credit-suisse.com; William Blair & Company, L.L.C., Attention: Prospectus Department, 150 North Riverside Plaza, Chicago, IL 60606, by telephone at (800) 621-0687, or by email at prospectus@williamblair.com; or Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison Avenue, New York, NY 10017, by telephone at (212) 518-9544 or by email at GSEquityProspectusDelivery@guggenheimpartners.com.  

Media Contact:
Emily Rios
Trevelino/Keller
erios@trevelinokeller.com

Investor Relations:
Bob East or Jordan Kohnstam
Westwicke, an ICR company
SOCIR@westwicke.com
(443) 213-0500

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SOURCE SOC Telemed

FAQ

What is the public offering price for TLMD's shares?

The public offering price for TLMD's shares is $6.00 per share.

How many shares is SOC Telemed offering in the public offering?

SOC Telemed is offering 8,000,000 shares of its Class A Common Stock.

What is the purpose of SOC Telemed's public offering on May 26, 2021?

The proceeds will be used to repay debt from the acquisition of Access Physicians and for working capital.

When is the closing date for SOC Telemed's public offering?

The offering is expected to close on June 1, 2021.

What are the potential risks of the public offering for TLMD shareholders?

The public offering may result in shareholder dilution due to the issuance of additional shares.