Proficient Auto Logistics prices $75M convertible note at 5.5%
What's the deal? Proficient Auto LogisticsDealroom has a profile for this one. Try Dealroom → (NASDAQ: PAL) has priced $75 million in convertible senior notes due 2033, the Jacksonville-based auto transportation and logistics provider announced on August 11. The private offering targets qualified institutional buyers and is expected to settle on August 13.
The terms: The senior, unsecured notes carry 5.50% annual interest, paid semi-annually starting February 15, 2027, and mature on August 15, 2033. The initial conversion price is roughly $6.50 per share — a 27.5% premium over the $5.10 close on August 11.
What's the money for? Proficient expects net proceeds of about $71.4 million after expenses. It plans to use the cash to refinance outstanding debt and to fund capped call transactions tied to the offering.
The capped call deals, struck with financial institutions, are designed to reduce potential dilution to Proficient's common stock when the notes convert.
How conversions work: Before May 15, 2033, holders can convert only on certain events; after that date, they may convert at any time. Proficient can settle in cash, shares, or a combination, at its election. The notes become redeemable at the company's option from August 15, 2030, if shares trade above 130% of the conversion price for a set period.
The signal: At $75 million, the raise sits toward the smaller end of the convertible market, placing it in roughly the bottom fifth of comparable deals by size. For Proficient, the structure is less about fresh growth capital than balance-sheet management — swapping existing debt for a lower-coupon instrument while capping the dilution risk that comes with it.
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