Patrick (NASDAQ:PATK) expects to receive net proceeds of $145.1M from its private upsized offering of $150M convertible senior notes due Feb. 1, 2023.
The convertible notes will bear interest rate of 1% p.a., payable semi-annually, unless earlier purchased or converted, with earlier
The company has granted underwriters a 30-day option to acquire an additional $22.5M shares to cover overallotments.
Net proceeds will be used to pay the cost of the convertible note hedge transactions, after such cost is partially offset by the proceeds to the Company from the warrant transactions and the balance in alignment with its capital allocation strategy, repay a portion of the amounts due under its current credit facility.
The existing lenders increased the maximum amount available under its credit facility by an additional $50M to $484M in 1Q18.
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