Spectranetics to price $200 million convertibles to yield 2.75%-3.25%, up 32.5%-37.5%

By Rebecca Melvin

New York, May 27 - Spectranetics Corp. launched a $200 million offering of 20-year convertible senior notes after the market close on Tuesday that was seen pricing after the market close on Wednesday and was talked to yield 2.75% to 3.25% with an initial conversion premium of 32.5% to 37.5%, according to a preliminary term sheet.

The registered offering has a $30 million greenshoe and was being sold via bookrunner Piper Jaffray & Co.

Proceeds are intended to fund the company's proposed acquisition of AngioScore Inc. If that acquisition is not completed, proceeds will be used for research and development, commercialization of products, working capital and other general corporate purposes.

The notes are non-callable for four years, and then provisionally callable for three years if Spectranetics shares exceed 130% of the conversion price for 30 consecutive days.

There are investor puts at years seven, 10 and 15.

There is takeover protection and conversion ratio adjustments for dividends paid on the common stock. The bonds will be physically settled.

Colorado Springs, Colo.-based Spectranetics makes single-use medical devices for the cardiovascular system.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.