trending Market Intelligence /marketintelligence/en/news-insights/trending/ax7tmJl0XKkPm8is4XC5_Q2 content esgSubNav
In This List

Benefitfocus closes $240M debt offering


Private Markets 360° | Episode 8: Powering the Global Private Markets (with Adam Kansler of S&P Global Market Intelligence)


Kensho Launches Word Error Rate Calculator


Insight Weekly: Bank oversight steps up; auto insurers’ dismal year; VC investment slumps


Bank failures: The importance of liquidity and funding data

Benefitfocus closes $240M debt offering

Benefitfocus Inc. completed the private offering of $240 million aggregate principal amount of its 1.25% convertible senior notes due Dec. 15, 2023, to qualified institutional buyers.

That amount includes the initial purchasers' exercise of their option to buy up to an additional $40 million aggregate principal amount of the notes.

Interest on the notes will be payable semiannually in arrears on June 15 and Dec. 15 of each year, starting June 15, 2019. The notes may be redeemable for cash, in whole or in part, on or after Dec. 20, 2021.

Net proceeds from the offering were about $233.6 million, after deducting the initial purchasers' discounts and commissions and the estimated offering expenses payable by the company.

The company used about $33 million of the net proceeds to pay the cost of the capped call transactions that it entered with one or more of the early buyers of the notes. About $39.2 million of the net proceeds will be used to pay off, but not terminate, the company's senior secured credit facility. The remainder of the net proceeds will be used for potential acquisitions and other general corporate purposes, including sales and marketing expenses, research and development expenses and general and administrative expenses.

U.S. Bank NA will act as trustee in connection with the issuance of the notes.