Novanta announces offering of 11M tangible equity units

Novanta (NOVT) announced that it has commenced a public offering of 11M tangible equity units, with an aggregate stated amount of $550M. Each tangible equity unit will have a stated amount of $50.00 and be comprised of a prepaid stock purchase contract and a senior amortizing note due 2028, each issued by Novanta. The tangible equity unit offering is a public offering made by means of a prospectus supplement under Novanta’s effective shelf registration statement. Novanta’s common shares are quoted on Nasdaq under the ticker symbol “NOVT,” and Novanta has applied to list the tangible equity units on Nasdaq under the symbol “NOVTU.” Novanta expects to use the net proceeds from the offering to strengthen the balance sheet and enhance strategic flexibility, which may include funding working capital and potential future acquisitions and investments, as well as capital expenditures, share repurchases, and other general corporate purposes. Pending use of the net proceeds from the offering, Novanta intends to use a portion of the net proceeds to repay approximately $317M of indebtedness under its revolving credit facility. J.P. Morgan and BofA Securities are acting as joint book-running managers for the tangible equity unit offering.