Analyst Note| Seth Goldstein, CFA |
On June 23, Livent announced the pricing for the senior convertible notes the company will issue. The notes will carry a 4.125% interest rate and convert at a price of approximately $8.73 per share, which represents a 35% premium to the June 22 closing price of $6.47 per share. In our June 22 update, we assumed a 45% premium for the notes. As the premium is lower than our assumption, the notes will be slightly more dilutive than we had originally modeled, with each $1,000 bond converting into 114.4885 shares, versus our assumption of roughly 106.6 shares.