Novanta launches $550 million tangible equity units offering

Novanta Inc. (NASDAQ: NOVT) announced it has commenced a public offering of 11 million tangible equity units with an aggregate stated amount of $550 million, according to a company statement.

Each tangible equity unit carries a stated amount of $50 and comprises a prepaid stock purchase contract and a senior amortizing note due 2028. The company has applied to list the tangible equity units on Nasdaq under the symbol "NOVTU."

The offering includes a 30-day option for underwriters to purchase up to an additional 1.65 million tangible equity units to cover over-allotments. J.P. Morgan and BofA Securities serve as joint book-running managers for the offering.

Novanta plans to use net proceeds to strengthen its balance sheet and enhance strategic flexibility, including funding working capital, potential acquisitions and investments, capital expenditures, share repurchases, and general corporate purposes. The company intends to use a portion of proceeds to repay approximately $317 million of indebtedness under its revolving credit facility.

The Boston-based company provides technology solutions to medical and advanced technology equipment manufacturers. The offering is being conducted through a prospectus supplement under Novanta's effective shelf registration statement filed with the Securities and Exchange Commission.

You May Also Be Interested In

• enVVeno Medical (NVNO) files $100M mixed shelf
• Baiya International Group (BIYA) files $200M mixed shelf
• Entera Bio Ltd. (ENTX) files for 134.8M share offering by selling stockholders