SOC Telemed Announces Proposed Public Offering of Class A Common Stock

Rhea-AI Summary

SOC Telemed (Nasdaq: TLMD) has launched a public offering of 8,000,000 shares of its Class A Common Stock, with an additional 1,200,000 share option for underwriters. Proceeds will be used to repay debt from the acquisition of Access Physicians and for general corporate purposes. The offering's completion is subject to market conditions. Credit Suisse, William Blair, and Guggenheim Securities are the joint book-running managers. A registration statement has been filed with the SEC but is not yet effective. The preliminary prospectus is available on the SEC's website.

Positive

• Intended use of proceeds for repaying debt related to Access Physicians acquisition, potentially improving financial stability.
• Possible growth through enhanced capital after the offering is completed.

Negative

• Dilution risk for existing shareholders due to the public offering of 8,000,000 shares.
• Market conditions may affect the offering's completion, posing uncertainties.

RESTON, Va., May 24, 2021 /PRNewswire/ -- SOC Telemed, Inc. (Nasdaq: TLMD), the largest national provider of acute care telemedicine, today announced that it has commenced an underwritten public offering of 8,000,000 shares of its Class A Common Stock. All of the shares are being offered by SOC Telemed. In conjunction with the offering, SOC Telemed intends to grant to the underwriters a 30-day option to purchase up to 1,200,000 additional shares of its Class A Common Stock. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

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 has been filed with the Securities and Exchange Commission (the "SEC") but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.

The offering will be made only by means of a prospectus. A preliminary prospectus related to the offering has been filed with the SEC and is available on the SEC's website at www.sec.gov. In addition, copies of the preliminary 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. Before investing in this offering, interested parties should read in its entirety the preliminary prospectus, which provides more information about SOC Telemed and the offering.

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 purpose of the SOC Telemed public offering on May 24, 2021?

The offering is intended to repay debt from the acquisition of Access Physicians and for general corporate purposes.

How many shares of Class A Common Stock is SOC Telemed offering?

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

What are the potential risks of SOC Telemed's stock offering?

The risks include share dilution for current shareholders and uncertainties regarding market conditions affecting the offering.

Who is managing SOC Telemed's public offering?

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

When was the public offering by SOC Telemed announced?

The public offering was announced on May 24, 2021.