Insulet greenshoe exercise increases convertibles to $345 million

By Angela McDaniels

Tacoma, Wash., Sept. 13 – Insulet Corp. said the underwriters of its 1.25% five-year convertible senior notes exercised their $45 million greenshoe in full, increasing the size of the offering to $345 million from $300 million.

As previously reported, the company priced the convertibles at par on Sept. 7 with an initial conversion premium of 32.5%.

The Rule 144A deal was initially talked at $250 million. Pricing came at the rich end of talk that was for a 1.25% to 1.75% coupon and a 27.5% to 32.5% premium.

The greenshoe was upsized to $45 million from $37.5 million.

The joint bookrunners were Morgan Stanley & Co. LLC and Wells Fargo Securities LLC.

The notes are non-callable for three years and then provisionally callable if shares exceed 130% of the conversion price. There are no puts.

The company used a portion of the proceeds to repurchase about $134 million of its 2% convertible senior notes due 2019. The remaining proceeds will be used for general corporate purposes, which may include buying back more of the remaining 2% convertibles, as well as investment in its manufacturing and supply chain operations.

Insulet is a Bedford, Mass.-based medical device maker.

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