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PLANO, Texas - Integer Holdings Corporation (NYSE: ITGR), a leading medical device contract development and manufacturing organization with a market capitalization of $4.03 billion and a solid financial health rating according to InvestingPro, announced today its plan to offer $750 million of convertible senior notes due in 2030, with an additional option for initial purchasers to buy up to $125 million more. The offering is subject to market conditions and other factors.
The Texas-based company, which maintains a healthy current ratio of 2.95 and has demonstrated strong revenue growth of 10.35% over the last twelve months, also revealed intentions to enter capped call transactions to potentially minimize the dilution impact on its common stock upon conversion of the notes. These financial instruments are expected to reduce or offset potential dilution and cash payments above the principal amount upon conversion, subject to a cap.
Proceeds from the offering will be allocated to various corporate actions, including the payment for the capped call transactions, repurchasing a portion of existing 2.125% convertible senior notes due in 2028 through privately negotiated transactions, and repaying borrowings under the company’s credit agreement. The remaining funds, if any, are intended for general corporate purposes.
The new convertible notes will be senior unsecured obligations, accruing semi-annual interest and maturing on March 15, 2030, unless repurchased, redeemed, or converted earlier. Conversion conditions are specified in the indenture, with the company having the option to settle conversions in cash, shares of common stock, or a combination thereof.
Integer Holdings has stated that the notes, as well as any common stock issued upon conversion or in exchange transactions, will not be registered under the Securities Act of 1933 and will be offered only to qualified institutional buyers. This press release is not an offer to sell these securities where such an offer or sale would be unlawful prior to registration or qualification under the securities laws of any jurisdiction.
The company cautions that market activities by the option counterparties or their affiliates, such as purchasing company stock or entering derivative transactions, could impact the market price of Integer’s common stock and the convertible notes, potentially affecting the conversion price.
This news is based on a press release statement from Integer Holdings Corporation, which serves markets including cardiac rhythm management, neuromodulation, and cardio and vascular sectors with brands like Greatbatch Medical® and Lake Region Medical®. For deeper insights into Integer Holdings’ financial health, valuation metrics, and exclusive analyst recommendations, visit InvestingPro, where you’ll find comprehensive Pro Research Reports covering 1,400+ top stocks, including ITGR.
In other recent news, Integer Holdings Corp reported its fourth-quarter 2024 earnings, revealing a strong performance with revenues reaching $449 million, which surpassed expectations. However, the company’s earnings per share (EPS) of $1.43 slightly missed the forecast of $1.46. Integer Holdings also announced its projection for 2025, expecting sales growth between 8% and 10%. The company has been active in strategic acquisitions, including the purchase of Precision Coating and BSI Parylene, which are anticipated to support future growth. Furthermore, Integer Holdings disclosed the upcoming retirement of board member William B. Summers, Jr., set for 2025. The company has not yet announced a successor for Summers. These recent developments reflect Integer Holdings’ ongoing efforts to maintain transparency and strategic growth in the medical device market.
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