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Invacare (IVC) Prices $105 Million Convertible Senior Notes

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Invacare Corporation recently announced that it has priced convertible senior notes worth $105 million. The notes come with a coupon rate of 4.50% and are due in 2022. The sale is expected to close Jun 14, 2017.

Stock Performance

The price performance of the stock has been unfavorable over the last three months. Invacare increased only 4.70%, while the Zacks classified Medical/Dental-Supplies sub-industry rose almost 7.90%.



The aforementioned notes will pay interest at a rate of 4.5% per year and will be payable semi-annually on Jun 1 and Dec 1, every year. The interest payout will start in Dec 1, 2017. At maturity, the holders of the notes will have the right to request the company to repurchase their notes at full value of principal, plus all interests. The conversion rate will be 61.6095 common shares per $1,000 principal amount of notes. This is equivalent to an initial conversion price of approximately $16.23 per common share. The conversion price of the notes represents a premium of approximately 32.5% to the $12.25 per share closing price of the company’s common shares on Jun 8, 2017.

Invacare is a leading manufacturer and distributor of medical equipment used in non-acute care settings. The company designs, manufactures and distributes medical devices that help people to move, breathe, rest and perform essential hygiene. The company provides medical device solutions for congenital, acquired and degenerative ailments. The company sells its products principally to home medical equipment providers with retail and e-commerce channels, residential care operators, distributors and government health services in North America, Europe and Asia/Pacific.

Zacks Rank and Key Picks

Currently, Invacare has a Zacks Rank #3 (Hold).

Few better-ranked medical stocks are Align Technology, Inc. (ALGN - Free Report) , Inogen, Inc. (INGN - Free Report) and Accelerate Diagnostics, Inc. (AXDX - Free Report) . Align Technology and Inogen sport a Zacks Rank #1 (Strong Buy), while Accelerate Diagnostics carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Align Technology has an expected long-term adjusted earnings growth of almost 22.8%. The stock roughly added 45.7% in the last three months.

Inogen has a long-term expected earnings growth rate of 17.5%. The stock has solid one-year return of around 79.7%.

Accelerate Diagnostics has expected long-term adjusted earnings growth of 30%. The stock has added 14% roughly in the last three months.

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