Spectranetics greenshoe increases 2.625% convertibles to $230 million

By Marisa Wong

Madison, Wis., June 3 - Spectranetics Corp. said that the underwriter of its recent offering of 20-year convertible senior notes exercised the deal's $30 million over-allotment option in full, increasing the total issue size to $230 million. The deal closed on Tuesday, according to a press release.

As previously reported, Spectranetics priced $200 million of the convertibles on May 28 at par to yield 2.625% with an initial conversion premium of 40%.

Pricing came toward the rich end of 2.75% to 3.25% coupon talk and beyond the rich end of 32.5% to 37.5% premium talk.

The registered offering was sold via bookrunner Piper Jaffray & Co.

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.

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.

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

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