Aspect Medical Systems repurchases $10 million in convertibles

By Julie A. Miller

Washington, June 5 - Aspect Medical Systems, Inc. announced that it repurchased $10 million face value of its 2.5% convertible senior notes due 2014 in privately negotiated transactions.

The company paid a total of about $6 million in cash, including accrued interest.

In June 2007, Aspect issued $125 million of the 2.5% notes in June 2007, and $115 remains outstanding.

"This repurchase of our notes enables us to favorably restructure our balance sheet by reducing our debt position while maintaining an adequate level of cash," chief financial officer Mike Falvey said in a statement.

"Because this repurchase was done at a discount to face value, we will record a one-time gain of approximately $4 million on a pre-tax basis during our second quarter ending June 28, 2008. This gain was not reflected in our Q2 2008 guidance."

Aspect, a Norwood, Mass.-based developer of brain monitoring technology, said it may repurchase additional outstanding convertible debt in the future.

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