Benefitfocus Inc. priced $200 million aggregate principal amount of its 1.25% convertible senior notes due 2023, in a private placement to qualified institutional buyers.
The company also granted the initial purchasers an option to buy up to an additional $40 million aggregate principal amount of the notes.
Also, the company entered into the eighth amendment to its credit agreement dated Feb. 20, 2015. The amendment modifies the definitions of capital stock and swap agreement to allow for indebtedness pursuant to the issuance of the notes, and certain investments expected to be made in connection with planned privately negotiated capped call transactions related to the planned sale of the notes.
The amendment also allows for permitted convertible indebtedness of up to $300 million and the hedge investments, among other things.