Market Overview

WebMD Closes $360 Million Convertible Notes Offering


WebMD Health Corp. (NASDAQ: WBMD) revealed that it closed its private placement of $360 million aggregate principal amount of 2.625 percent Convertible Notes due 2023. This included $60 million aggregate principal amount of notes pursuant to the exercise in full of the initial purchaser's over-allotment option.

WebMD Health said the notes were convertible into shares of its common stock based on an initial conversion rate of 11.4845 shares per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $87.07 per share. According to the company, the initial conversion price represented a premium of about 30 percent over the closing price of its common stock on the Nasdaq Global Select Market on May 25.

The company indicated that the notes would mature on June 15, 2023, unless earlier repurchased or converted in accordance with their terms prior to such date. The company plans to use the net proceeds for general corporate purposes. That might include share buyback, acquisitions, working capital and buying back the outstanding convertible notes.

Posted-In: News Offerings


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