Evolent Health, Inc. announced the pricing of $145.0 million aggregate principal amount of 4.50% convertible senior notes due 2031, an increase from the previously proposed $140.0 million offering. The initial purchasers have a 30-day option to purchase up to an additional $21.75 million aggregate principal amount of notes.
The company expects net proceeds of approximately $140.2 million from the offering. Evolent plans to use approximately $100.2 million of these proceeds, along with available liquidity, to repurchase approximately $167.4 million aggregate principal of its 1.50% convertible senior notes due 2025. Additionally, $40.0 million of the net proceeds will be used to repurchase shares of Evolent's Class A common stock at $9.02 per share concurrently with the offering.
This transaction is projected to help Evolent avoid over $9 million of annual interest expense compared to retiring the 2025 notes with its committed incremental credit facilities. Following the retirement of the 2025 notes, Evolent will have no debt maturities until 2029, significantly strengthening its capital structure and financial flexibility. Settlement of the notes is expected to occur on August 21, 2025.
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