Aspect repurchases $35 million more 2.5% convertibles due 2014

By Jennifer Chiou

New York, Dec. 3 - Aspect Medical Systems, Inc. said it bought back $35 million of its 2.5% convertible senior notes due 2014 for about $16 million in cash, including interest.

As a result of these and prior repurchases, $65 million of the 2.5% notes remains outstanding.

The company issued $125 million of the notes in June 2007.

"As a result of this transaction, we will recognize a one time pre-tax gain of $18 million that was not factored into our Q4 2008 guidance," chief financial officer Michael Falvey said in a news release.

"Together with our repurchases conducted in Q2 and Q3, we have been able to reduce the face value of our debt by $60 million on terms that we believe are favorable to our shareholders. We expect to end Q4 with approximately $80 million in cash and $65 million face value of debt."

Aspect is a Norwood, Mass.-based developer of brain monitoring technology.

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