Novanta issues 12.65 million 6.50% tangible equity units at $50.00 each
On November 12, 2025, Novanta issued 12,650,000 tangible equity units at $50.00 each, including 1,650,000 units from the underwriters' full exercise of their over-allotment option. Each unit pairs a purchase contract requiring delivery of common shares on November 1, 2028 with a senior amortizing note paying cash equivalent to 6.50% a year. The company plans to use part of the proceeds to repay about $317 million of revolving credit facility debt, and the share settlement could increase the number of common shares outstanding.
Key points
- 12,650,000 units issued on November 12, 2025, including 1,650,000 from the full over-allotment exercise; public offering price of $50.00 per unit
- Each purchase contract settles on November 1, 2028 in 0.3729 to 0.4662 common shares, depending on the market value of the shares, with the reference price approximately $107.26
- Each amortizing note has an initial principal of $8.74 and quarterly installments equivalent to 6.50% a year, with the first installment on February 1, 2026 at $0.7132
- About $317 million of revolving credit facility debt will be repaid from net proceeds, with the remaining balance deposited in an interest-bearing account
The filing
Written by AI on Nov 8, 2026, 1:05 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on November 12, 2025.
Briefs are written by AI from the filing text and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the AI's reading of the filing for shareholders, not a price forecast. Not investment advice.