By Chris Wack
Alignment Healthcare shares were down 14% at $11.10 after the company said it has entered into privately negotiated subscription agreements with certain investors to which it will issue $330 million in 4.25% convertible senior notes due 2029.
Shares of the senior-care healthcare company hit their 52-week high of $14.25 on Nov. 6, and are up 68% in the past 12 months.
The Orange, Calif., company said the issuance of the notes is expected to close Nov. 22.
The notes will be senior, unsecured obligations of the company, and interest will be payable semi-annually in arrears at a rate of 4.25% per annum. The notes will mature Nov. 15, 2029, unless earlier repurchased, redeemed or converted in accordance with their terms.
The conversion price for the notes will initially be $16.04, which represents a premium of 25% to the closing price of the company's stock on Thursday.
Alignment Healthcare expects to see cash proceeds of $321.05 million.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
November 15, 2024 11:05 ET (16:05 GMT)
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