Alignment Healthcare, Inc. announced on November 15, 2024, that it has entered into privately negotiated subscription agreements to issue $330 million principal amount of 4.25% Convertible Senior Notes due 2029. The issuance is expected to close on November 22, 2024, and the notes will be senior, unsecured obligations with interest payable semi-annually.
The conversion price for these notes is set at approximately $16.04, representing a 25% premium to the common stock's closing price on November 14, 2024. The company anticipates net cash proceeds of approximately $321.05 million from this transaction.
Alignment Healthcare intends to use these proceeds to repay its existing term loan facility, which carried an interest rate of SOFR + 6.5%, and for general corporate purposes. This refinancing is expected to reduce the company's annual interest expense by approximately $10 million, enhancing its financial efficiency.
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