Horizon Global was modestly higher in recent pre-market trade after pricing public offerings of 4 million common shares, or up to 4.6 million shares if underwriters exercise their option to buy additional shares in full, and $110 million in convertible senior notes due 2022.
The common shares will be sold for $18.50 apiece. On the other hand, the notes will pay an interest of 2.75% per annum and are convertible at a rate of 40.0400 shares per $1,000 principal amount. Proceeds from the combined offerings will be used to pay the company’s term loan and for general corporate purposes.
Horizon said it intends to use all of the net proceeds from the stock offer, along with a portion of the net proceeds from the notes offering, to repay approximately $157.5 million of its term loan. The remainder of the notes offering proceeds will be used to pay the cost of convertible note hedge transactions and for general corporate purposes.