Conceptus issues new notes for $50.04 million 2.25% convertibles

By Jennifer Chiou

New York, Dec. 20 - Conceptus, Inc. announced that it entered into privately negotiated exchange agreements to issue a like amount of new 5% convertible senior notes due 2031 for $50.04 million of its $86.25 million of 2.25% convertible senior notes due 2027.

The new notes mature on Dec. 15, 2031 and have an initial conversion rate of 60.8365 shares per $1,000 principal amount of notes, equivalent to an initial conversion price of $16.44 per share. The initial conversion price represents a 25% premium over the closing price of Conceptus' shares on Dec. 19.

The notes are callable from Dec. 20, 2014 onwards, and there are put dates scheduled to fall on Dec. 20 in 2014, 2018, 2021 and 2026.

In addition, the company entered into private exchange agreements to refinance a portion of the 2.25% notes prior to the Feb. 15, 2012 put date. On that date, holders may require Conceptus to repurchase all or a portion of the remaining $36.21 million of existing notes.

The issuer is a Mountain View, Calif.-based maker of birth control devices.

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