Integer Holdings Opens Note Conversion at $87.20 Strike

Integer Holdings Corporation (NYSE: ITGR) told holders of its 2.125% Convertible Senior Notes due 2028 that the securities are convertible at the holder's option from October 1 through the close of business on December 31, 2026, according to a company statement dated October 2, 2026. ITGR traded at $126.45, up 0.08% on the day, inside a range of $126.44 to $126.54, as of 11:27 UTC today. The conversion price sits at roughly $87.20 per share.

Context — why the conversion window opened now

The trigger is mechanical, not discretionary. Integer said the notes became convertible because the last reported sale price of its common stock was greater than 130% of the conversion price in effect on each applicable trading day for at least 20 trading days, consecutive or not, within the 30 consecutive trading days ending on and including the last trading day of the calendar quarter that closed September 30, 2026.

That 130% threshold implies a share price above roughly $113.36, a level ITGR cleared repeatedly during the measurement window. The report does not disclose the closing price on September 30, 2026, or the specific trading days that satisfied the test.

The company framed the window as a holder election. Integer said the notes are convertible into cash up to the principal amount, and into cash, shares of common stock or a combination of the two at the company's election for any conversion obligation above principal. That structure gives Integer control over the settlement mix, a detail that matters for anyone modelling share count.

The company also said any determination about convertibility in future periods will follow the terms of the indenture governing the notes. Integer issued a formal notice to holders spelling out the applicable terms, conditions and procedures.

What changed is the equity price, not the credit. Integer's own disclosure ties the window to the 20-of-30-session test rather than to any corporate action, financing need or change in the medical device contract development and manufacturing business.

Data — what the numbers show

The conversion economics are fixed and disclosed. Holders convert at 11.4681 shares of common stock per $1,000 principal amount of notes, which the company said is equivalent to a conversion price of approximately $87.20 per share.

At the $126.45 quote, the parity value of that conversion right sits well above the $87.20 strike, which is the arithmetic behind the 130% trigger. The company did not disclose the aggregate principal amount outstanding, the number of shares potentially issuable, or the size of any cash component.

Item	Disclosed figure
Coupon	2.125%
Maturity	2028
Conversion rate	11.4681 shares per $1,000
Conversion price	~$87.20
ITGR last	$126.45 (+0.08%)
Session range	$126.44–$126.54

The company did not provide a peer comparison, sector index level or prior-quarter conversion status in the notice. It also did not state whether the notes were convertible in any earlier period, so no before/after change in conversion eligibility can be established from the disclosure.

Analysis — what it means for markets and sectors

The immediate read is a capital-structure question rather than a demand signal. A conversion window on a 2.125% coupon note gives holders a choice: convert into equity at a strike the stock has already cleared, or hold paper paying well below prevailing market yields. The company's ability to settle the excess in cash, stock or a mix is the lever that determines dilution.

Second-order effects land on the convertible arbitrage community first. Funds that own the notes against a short equity position typically unwind hedges as conversion windows open, and that flow can pressure the underlying share price independent of fundamentals. Integer did not disclose any holder positions or hedging activity.

The counter-argument is that conversion is optional and rational holders may simply not elect. If the equity trades near the $126.45 print and the notes carry a 2028 maturity, a holder weighing an early conversion against carrying the coupon may prefer to wait, particularly if the stock's advance stalls. The window closing December 31, 2026 is not the maturity date.

A second limitation: the disclosure does not quantify the outstanding principal, so the potential share issuance cannot be sized. Without that figure, dilution math stays incomplete.

For the medical device contract manufacturing sector, Integer's disclosure is company-specific. The report names no peer, no customer and no sector index, so no read-across to other CDMOs is supported by the facts here.

Outlook — what to watch next

Three dates anchor the calendar. The conversion window runs through the close of business on December 31, 2026. Any future determination of convertibility will be made under the indenture, meaning the 20-of-30-session test resets against a new measurement period. The company's next scheduled disclosure is not given in the report.

On levels, the live quote puts ITGR at $126.45 with a tight intraday band of $126.44 to $126.54. The disclosed conversion price of roughly $87.20 and the implied 130% threshold near $113.36 are the two reference points the company's own filing supplies; no other technical level appears in the disclosure.

Watch whether Integer files anything further on settlement elections, and whether the indenture test is met again for the quarter ending December 31, 2026. The company said any such determination will follow the indenture terms.

Frequently Asked Questions

What does the Integer Holdings conversion window mean for retail investors?

It means holders of the 2.125% notes due 2028 can choose to convert during the October 1 to December 31, 2026 window. For equity holders, the relevant question is settlement mix: Integer can pay the principal portion in cash and elect cash, stock or a combination for the excess. The company did not disclose how it intends to settle, so dilution remains unquantified.

Why did Integer's notes become convertible?

Integer said the notes became convertible because its common stock traded above 130% of the conversion price on at least 20 of the 30 consecutive trading days ending with the last trading day of the quarter that closed September 30, 2026. With a conversion price near $87.20, that threshold implies a share price above roughly $113.36. The company did not list the qualifying sessions.

What happens next for Integer Holdings and ITGR?

The conversion window stays open through December 31, 2026. After that, convertibility depends on the indenture's terms and a fresh measurement period. Integer has not disclosed the aggregate principal outstanding, the number of shares potentially issuable, or its intended settlement method, so the equity impact cannot be sized from the notice alone.

Bottom Line

Integer's notes are convertible through December 31, 2026 because ITGR cleared 130% of the $87.20 strike, leaving settlement mix as the open dilution question.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.