Evolent Health, Inc. announced the pricing of $145.0 million aggregate principal amount of 4.50% convertible senior notes due 2031.
The notes are being offered to qualified institutional buyers.
Key terms include interest payable semiannually, conversion options, and share repurchase.
Pricing of Convertible Senior Notes
$145.0 million aggregate principal amount of 4.50% convertible senior notes due 2031 priced.
Conversion Options
Notes convertible into cash, shares of Class A common stock, or a combination based on an initial conversion rate.
Share Repurchase
Evolent to repurchase 4.43 million shares of Class A common stock sold short by initial investors.
- The transaction helps Evolent avoid over $9 million of annual interest expense compared to retiring the 2025 notes.
- Shareholder dilution is minimized with an effective conversion premium over 130% due to the concurrent share repurchase.
Evolent's proactive capital allocation strategy strengthens its financial position and commitment to debt reduction, ensuring no maturities until 2029.