Integer Holdings Corporation announced the closing of its offering of $1.0 billion aggregate principal amount of 1.875% convertible senior notes due 2030. The offering was upsized from an initial $750 million to $875 million, with initial purchasers fully exercising their option to purchase an additional $125 million. The aggregate net proceeds from this offering are estimated to be $976.1 million.
This transaction is expected to be immediately accretive to 2025 adjusted earnings by approximately $12 million, primarily due to meaningfully lower interest expense. The strategic refinancing creates revolver capacity, enabling Integer to continue its tuck-in acquisition strategy while maintaining its targeted leverage range of 2.5 to 3.5 times adjusted EBITDA.
The net proceeds will be used to pay costs associated with capped call transactions, exchange a portion of the outstanding 2028 convertible notes, and fully repay outstanding borrowings under the company’s revolving credit facility and Term A loan. The structure of the notes and associated capped calls are designed to mitigate potential dilution, with an effective conversion price of $189.44, a 60% premium over the common stock's closing price on March 13, 2025.
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