News: Optoelectronics
9 June 2021
II-VI Inc receives extra $350m equity commitment from Bain
Engineered materials and optoelectronic component maker II-VI Inc of Saxonburg, PA, USA says that Bain Capital is making an additional equity investment of $350m in II-VI, increasing its total equity commitment to the firm to $2.15bn.
As disclosed on 31 March, II-VI sold 75,000 shares of a new Series B-1 Convertible Preferred Stock to Bain Capital at $10,000 per share, for a total $750m.
Bain also committed to purchase, immediately prior to the closing of II-VI’s pending business combination with Coherent Inc of Santa Clara, CA, USA (which provides lasers and laser-based technology for scientific, commercial and industrial applications), 105,000 shares of a new Series B-2 Convertible Preferred Stock at $10,000 per share (for $1.05bn), for a total commitment of $1.8bn, including the $750m received by II-VI on 31 March.
II-VI also had the right to request that Bain purchase an additional 35,000 shares of Series B-2 Convertible Preferred Stock at $10,000 per share (for $350m), which would also occur immediately prior to the closing of the pending business combination with Coherent.
With this additional $350m commitment, Bain will purchase a total of 140,000 shares of Series B-2 Convertible Preferred Stock for a total $1.4bn immediately prior to, and conditioned on, the closing of the Coherent transaction. As a result, Bain will have purchased a total of $2.15bn of II-VI’s Series B Convertible Preferred Stock.
All of the shares of Series B Convertible Preferred Stock will be convertible into shares of II-VI common stock at a conversion price of $85 per share, and the shares of Series B-1 Convertible Preferred Stock issued in March became voting shares upon expiration of the Hart-Scott-Rodino Act waiting period on 3 June.
Coherent accepts II-VI acquisition proposal
