Integer Holdings Corporation Enhances Capitalization Structure with the Closing of $1.0 Billion Convertible Senior Notes Offering

Core Viewpoint - Integer Holdings Corporation has successfully closed a $1.0 billion offering of 1.875$750 million to $875 million due to strong investor demand, with an additional$125 million purchased by initial purchasers [1][2]. - The transaction is projected to lower interest expenses by approximately $12 million in 2025, based on current outstanding debt and interest rates [2]. - The estimated net proceeds from the offering will be$976.1 million after deducting discounts and expenses, which will be used for various financial obligations including repaying existing debt [2]. Strategic Objectives - The transaction creates revolver capacity, allowing the company to continue its tuck-in acquisition strategy while maintaining a targeted leverage range of 2.5 to 3.5 times adjusted EBITDA [2]. - The structure of the convertible notes and associated capped calls is designed to mitigate potential dilution for investors in the future [2][3]. Conversion Details - Upon conversion, the principal amount of the notes will be paid in cash, with an effective conversion price set at $189.44, representing a 60$118.40 on March 13, 2025 [3]. - The company has the option to minimize future dilution by delivering the value of any conversion obligation owed in cash or a combination of cash and shares [3]. Company Overview - Integer Holdings Corporation is a leading medical device contract development and manufacturing organization, serving various markets including cardiac rhythm management and neuromodulation [4]. - The company is committed to providing innovative, high-quality products and solutions to enhance patient lives globally [4].