Heska to offer $75M in convertible senior notes

Friday September 20, 2019 0 comments Tags: Loveland, Heska Corporation

LOVELAND -- Heska Corporation (Nasdaq: HSKA), a provider of advanced veterinary diagnostic and specialty healthcare products, announced it will offer $75 million in aggregate principal amount of convertible senior notes due 2026, subject to market conditions and other factors.Heska_logoUSE

The notes are to be sold only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended.

Prior to the close of business on the business day immediately preceding March 15, 2026, the notes will be convertible at the option of the holders only upon the occurrence of certain events and during certain periods.

Thereafter, the notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding the maturity date.

Upon conversion, Heska will pay or deliver cash, shares of the company's common stock or a combination thereof, at the company's election.

The interest rate, initial conversion rate and other terms will be determined by negotiations among J.P. Morgan Securities LLC and Piper Jaffray & Co., the initial purchasers of the notes, and the company.

Heska also expects to grant to initial purchasers a 13-day option to purchase up to an additional $11.25 million aggregate principal amount of the notes.

Heska said it expects to use net proceeds of the offering (including from any exercise by the initial purchasers of their option to purchase additional notes) to repay all outstanding indebtedness of $12.75 million under its existing credit facility, to fully fund a $2 million cash collateral account contemplated to secure its obligations under its credit facility as amended in connection with the offering, to fund its intended expansion efforts, including through acquisitions of complementary businesses or technologies or other strategic transactions, and for working capital and other general corporate purposes.