Item 1.01 Entry into a Material Definitive Agreement.
Indenture and the Notes
On
May 20, 2016, Wright Medical Group N.V. (the Company) issued $395 million aggregate principal amount of 2.25% Cash Convertible Senior Notes due 2021 (the Notes) pursuant to an indenture, dated as of May 20, 2016
(the Indenture), between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee (the Trustee). The Notes will pay interest at a rate of 2.25% per year, payable semiannually in arrears on May 15
and November 15 of each year, beginning on November 15, 2016, and will mature on November 15, 2021, unless earlier converted or repurchased.
The Notes are not convertible into ordinary shares of the Company, par value 0.03 per share (the Ordinary Shares), or
any other securities under any circumstances. Prior to the close of business on the business day immediately preceding May 15, 2021, holders may surrender their Notes for conversion solely into cash at their option upon satisfaction of one or
more of the following circumstances:
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during any calendar quarter commencing after the calendar quarter ending on June 30, 2016 (and only during such calendar quarter), if the last reported sale price of the Ordinary Shares for at least 20 trading days
(whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day;
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during the five business day period after any five consecutive trading day period, or the measurement period, in which the trading price (as defined in the Indenture) per $1,000 principal amount of Notes for each
trading day of the measurement period was less than 98% of the product of the last reported sale price of the Ordinary Shares and the conversion rate on each such trading day; or
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upon the occurrence of specified corporate events.
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On or after May 15, 2021 until the
close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their Notes solely into cash at any time, regardless of the foregoing circumstances. Upon conversion, in lieu of receiving Ordinary
Shares, a holder will receive an amount in cash, per $1,000 principal amount of Notes, equal to the settlement amount, determined in the manner described in the Indenture.
The conversion rate will initially be the cash equivalent of 46.8165 Ordinary Shares per $1,000 principal amount of Notes, which is equivalent
to an initial conversion price of approximately $21.36 per Ordinary Share. The conversion will be subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest, except in limited circumstances.
If the Company undergoes a fundamental change (as defined in the Indenture), subject to certain conditions, holders of the Notes may require
the Company to repurchase for cash all or a portion of their Notes at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase
date. In addition, following a make-whole fundamental change (as defined in the Indenture) that occurs prior to the maturity date, the Company, under certain circumstances, will pay a cash make-whole premium by increasing the conversion rate for
Notes converted in connection with such make-whole fundamental change.
The Indenture provides for customary events of default. In the
case of an event of default arising from specified events of bankruptcy, insolvency or reorganization, involving the Company or a significant subsidiary, 100% of the principal of and accrued and unpaid interest, if any, on the Notes will
automatically become due and payable. If any other event of default under the Indenture occurs or is continuing, the Trustee or holders of at least 25% in principal amount of the then outstanding Notes may declare 100% of the principal of and
accrued and unpaid interest, if any, on all of the Notes to be due and payable. In certain circumstances if the Company fails to timely file certain documents or reports required under the United States Securities Exchange Act of 1934, as
amended, additional interest will accrue on the Notes during the period in which its failure to file has occurred and is continuing. In addition, if, and for so long as, the restrictive legend on the Notes has not been removed, the Notes are
assigned a restricted CUSIP or the Notes are not otherwise freely tradable by holders of the Notes (other than the Companys affiliates) as of the 375th day after the last date of original issuance of the Notes, the Company will pay additional
interest on the Notes until such restrictive legend is removed, the Notes have been assigned an unrestricted CUSIP and the Notes are freely tradable.
The foregoing description of the Indenture and the Notes does not purport to be complete and is qualified in its entirety by reference to the
Indenture (including the form of the Note), which is filed as Exhibit 4.1 to this Current Report on Form 8-K and is incorporated herein by reference.