Evolent Health, Inc. announced a proposed offering of $140.0 million of convertible senior notes due 2031.
The company intends to use the proceeds to repurchase existing notes and Class A common stock.
The notes will be offered to qualified institutional buyers under Rule 144A of the Securities Act.
Offering Details
$140.0 million convertible senior notes due 2031 with an option for additional $20.0 million notes.
Use of Proceeds
$100.0 million to repurchase 2025 Notes and $40.0 million for Class A common stock repurchase.
Conversion Rights
Notes convertible into cash, Class A common stock, or a combination based on a predetermined rate.
- Repurchase of 2025 Notes and Class A common stock shares.
- Market price impact due to share repurchases and conversion rights termination conditions.
Evolent Health's strategic move of offering convertible senior notes reveals a plan to optimize its capital structure and address existing obligations. The company aims to strengthen its financial position and enhance shareholder value through this initiative.