Teladoc Health Inc. on May 19 issued $1 billion of its 1.25% convertible senior notes due June 1, 2027.

The Purchase, N.Y.-based healthcare technology company may settle the notes in cash, common shares or a combination of both.

Interest on the notes is payable on June 1 and Dec. 1 of each year, beginning Dec. 1, 2020.

The notes may be converted into shares at an initial rate of 4.1258 Teladoc common shares per $1,000 principal amount of the notes, which is equivalent to an initial conversion price of about $242.38 per share.

Teladoc intends to use a portion of the net proceeds from the offering to exchange about $228.2 million of its 3% convertible senior notes due 2022.

J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC were representatives of the initial purchasers of the notes.