Vocera Raises $200M Via Convertible Senior Notes For Debt Financing

Vocera Communications Inc (NYSE: VCRA) priced $200 million 0.50% senior convertible notes due 2026 to raise $193.9 million in an institutional offering.
Vocera also granted the initial purchasers of the notes with an option to purchase additional notes up to $30 million.
Vocera intends to partly utilize the offering proceeds to pay the cost of the capped call transactions. It plans to use $103.4 million of offering proceeds along with 1.3 million shares to buyback $102.9 million 1.50% senior convertible notes due 2023. Vocera intends to utilize the remainder of the offering proceeds for working capital and other general corporate purposes, including R&D funding, increasing working capital, acquisitions or investments in complementary businesses, products or technologies, and capital expenditures.
Morgan Stanley, Piper Sandler, and William Blair & Company are the initial purchasers of the notes.
Vocera has entered into capped call transactions with certain financial institutions to offset the potential stock dilution from any note conversion. The capped call transactions’ initial cap price is $77.96, representing a 75% premium to the closing price of $44.55 on March 9, 2021.
The notes will be senior, unsecured obligations of Vocera accruing a semi-annual interest of 0.5% per year and mature on September 15, 2026.
The notes will be redeemable after March 20, 2024, but only if the last reported sale price per share of Vocera’s stock exceeds 130% of the conversion price for a specified period.
The notes will have an initial conversion rate of 16.6 shares of Vocera stock per $1,000 principal amount of notes equivalent to an initial conversion price of $60.14 per share, signifying a 35% premium to March 9, 2021 closing price.
Vocera’s convertible senior notes stood at $124.4 million as of December 31, 2020.
VCRA stock has gained 61% in the last six months.
Price action: VCRA shares are lower by 1.93% at $43.69 on the last check Wednesday.

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Vocera Raises $200M Via Convertible Senior Notes For Debt Financing