Item 1.01. Entry Into a Material Definitive Agreement
The information set forth in Item 8.01 of this Current Report on Form 8-K under
the heading "Additional Capped Call Transactions" is incorporated herein by
reference.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant
The information set forth in Item 8.01 of this Current Report on Form 8-K is
incorporated herein by reference.
Item 3.02. Unregistered Sales of Equity Securities
The information set forth in Item 8.01 of this Current Report on Form 8-K under
the heading "Option Notes" is incorporated herein by reference.
Item 8.01. Other Events.
Option Notes
On December 18, 2019, pursuant to that certain Purchase Agreement (the "Purchase
Agreement"), dated as of December 4, 2019, by and among Allscripts Healthcare
Solutions, Inc. (the "Company") and J.P. Morgan Securities LLC and Wells Fargo
Securities, LLC, as representatives of the several initial purchasers named
therein (collectively, the "Initial Purchasers"), the Initial Purchasers
notified the Company of the partial exercise of their option to purchase
additional 0.875% Convertible Senior Notes due 2027 of the Company (the
"Notes"). On December 20, 2019, the Company issued an additional $18 million in
aggregate principal amount of Notes (the "Option Notes") to the Initial
Purchasers. The Option Notes have the same terms as, and are issued under the
same indenture as, the $200 million aggregate principal amount of Notes issued
by the Company on December 9, 2019. For additional information regarding the
terms of the Option Notes and the related indenture, see the information set
forth under the headings "0.875% Convertible Senior Notes due 2027" and
"Indenture" in Item 1.01 of the Company's Current Report on Form 8-K filed with
the Securities and Exchange Commission on December 9, 2019, which information is
incorporated herein by reference.
The net proceeds from the sale of the Option Notes were approximately
$17.55 million, after deducting the initial purchasers' fees but before
deducting other estimated expenses. The Company used $1.422 million of the net
proceeds to pay the cost of the Additional Capped Call Transactions (as defined
below), and the Company intends to use the remainder of the net proceeds to
repay additional outstanding borrowings under the Company's senior secured
revolving credit facility.
The Option Notes were sold to the Initial Purchasers in reliance on the
exemption from the registration requirements provided by Section 4(a)(2) of the
Securities Act of 1933, as amended (the "Securities Act"), and the Option Notes
were resold to qualified institutional buyers as defined in, and in reliance on,
Rule 144A under the Securities Act. The offer and sale of the Option Notes and
the shares of the Company's common stock issuable upon conversion of the Option
Notes, if any, have not been and will not be registered under the Securities Act
or the securities laws of any other jurisdiction, and such securities may not be
offered or sold in the United States absent registration or an applicable
exemption from the registration requirements of the Securities Act and other
applicable securities laws. This Current Report on Form 8-K does not constitute
an offer to sell, or a solicitation of an offer to buy, any security and shall
not constitute an offer, solicitation or sale in any jurisdiction in which such
offering would be unlawful.
Additional Capped Call Transactions
In connection with the Initial Purchasers' exercise of their option to purchase
the Option Notes, on December 18, 2019, the Company entered into additional
privately negotiated capped call transactions (the "Additional Capped Call
Transactions") with each of JPMorgan Chase Bank, National Association, New York
Branch, Wells Fargo Bank, National Association, Bank of America, N.A. and
Deutsche Bank AG, London Branch (collectively, the "option counterparties"). The
Additional Capped Call Transactions are expected generally to reduce the
potential dilution to the Company's common stock and/or offset the cash payments
the Company is required to make in excess of the principal amount of the
converted Option Notes upon conversion of the Option Notes, as the case may be,
in the event that the market price of the Company's common stock is greater than
the strike price of the Additional Capped Call Transactions (which initially
corresponds to the initial conversion price of the Option Notes of approximately
$13.32 per share and is subject to certain adjustments under the terms of the
Additional Capped Call Transactions), with such reduction and/or offset subject
to a cap based on the cap price of the
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Additional Capped Call Transactions. The Additional Capped Call Transactions
have an initial cap price of approximately $17.59 per share, and is subject to
certain adjustments under the terms of the Additional Capped Call Transactions.
The Additional Capped Call Transactions cover, subject to anti-dilution
adjustments substantially similar to those applicable to the Option Notes, the
number of shares of the Company's common stock that underlie the Option Notes.
The Company used $1.422 million of the net proceeds from the issuance of the
Option Notes to pay the cost of the Additional Capped Call Transactions.
The Additional Capped Call Transactions are not part of the terms of the Option
Notes and will not affect any holder's rights under the Option Notes. Holders of
the Option Notes will not have any rights with respect to the Additional Capped
Call Transactions.
The above description of the Additional Capped Call Transactions is a summary
only and is qualified in its entirety by reference to the Additional Capped Call
Confirmations for the Additional Capped Call Transactions, which are attached
hereto as Exhibits 10.1 through 10.4 and are incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
10.1 Additional capped call transaction confirmation, dated as of
December 18, 2019, by and between JPMorgan Chase Bank, National
Association, New York Branch and Allscripts Healthcare Solutions, Inc.
10.2 Additional capped call transaction confirmation, dated as of
December 18, 2019, by and between Wells Fargo Bank, National Association
and Allscripts Healthcare Solutions, Inc.
10.3 Additional capped call transaction confirmation, dated as of
December 18, 2019, by and between Bank of America, N.A. and Allscripts
Healthcare Solutions, Inc.
10.4 Additional capped call transaction confirmation, dated as of
December 18, 2019, by and between Deutsche Bank AG, London Branch and
Allscripts Healthcare Solutions, Inc.
104 Cover Page Interactive Data File (formatted in Inline XBRL).
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