Allscripts made $200 million available in convertible senior notes as part of a private offering to qualified institutional buyers, according to the company's Dec. 3 news release.
The notes, which are due 2027, are subject to market and other conditions, and the Chicago-based EHR vendor expects to grant initial purchasers of the notes an option to purchase an additional $30 million aggregate principal amount of the notes, according to the report.
Allscripts plans to use a portion of the profits from the offering to pay the cost of capped call transactions, which the company intends to establish with certain initial purchasers and/or their respective affiliates. Allscripts expects to use the remaining profits to repay outstanding borrowings under its senior secured revolving credit facility. Allscripts will not be able to redeem the notes until Jan. 1, 2027.
The interest rate, conversion rate and other terms of the notes will be determined by negotiations between Allscripts and other initial purchasers.
To access Allscripts' complete announcement, click here.