Freshpet Raises $340M Via Debt Offering

Freshpet Inc FRPT has priced its offering of $350 million aggregate principal amount of 3.00% convertible senior notes due 2028.
The issuance and sale of the notes are scheduled to settle on March 20, 2023.
Freshpet also granted the initial purchasers of the notes an option to purchase, for settlement within a period of 13 days from the date of issue, up to an additional $52.5 million principal amount of notes.
The notes will be senior, unsecured obligations of Freshpet and will accrue interest at 3.00% per annum, payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2023.
Freshpet estimates that the net proceeds from the offering will be approximately $340.3 million, or $391.4 million if the initial purchasers fully exercise their option to purchase additional notes.
Freshpet intends to use approximately $57.6 million of the net proceeds to fund the cost of entering into the capped call transactions and the remainder for general corporate purposes.
Price Action: FRPT shares closed lower by 1.83% at $54.65 on Wednesday.