Evolent Health edges down after $145 mln convertible debt offering

Evolent Health

19/08/2025 13:47

** Shares of healthcare tech co Evolent Health EVH.N down 0.2% before the bell to $9 after capital raise

** Arlington, Virginia-based EVH early Tues announces pricing offering of $145 mln 4.5% convertible bonds (CBs) due 2031

** Initial conversion price set at $13.53, which is 50% above stock's last close

** EVH intends to use ~$100 mln of net proceeds to fund repurchase approx $167.4 mln principal of its 1.50% CBs due 2025

** It also intends to use $40 mln to repurchase its stock in connection with the offering in privately negotiated transactions

** Co has roughly $1.1 bln market cap based on ~117.5 mln shares outstanding as of Aug 1, SEC filings show

** Shares fell 3% on Mon, leaving them down ~20% YTD. Stock closed at $27.71 a year ago

** 13 of 14 analysts rate EVH "strong buy" or "buy", 1 rates "hold" and median PT is $16, according to LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))