Spectranetics holders may put, convert 2.625% notes due to merger

By Susanna Moon

Chicago, Aug. 10 – Spectranetics Corp. said holders may exercise a put option under its 2.625% convertible senior notes due 2034 due to the merger with a subsidiary of Koninklijke Philips NV.

The merger closed on Wednesday and constituted a fundamental change, make-whole adjustment event and share exchange event under the note terms, according to a company announcement.

The notes are also convertible until Sept. 5 as a result of the merger.

After the merger, each common share was converted into the right to receive $38.50 in cash, without interest, less any withholding taxes. Thus, any notes that are converted from Aug. 9 through Sept. 5 will be converted into the right to receive an amount in cash equal to $1,364.32 per $1,000 principal amount of notes, based on a conversion rate equal to 35.4368 shares per $1,000 principal amount converted multiplied by $38.50 per share.

Notes that are converted before Aug. 9 or after Sept. 5 will be converted into the right to receive $1,228.23 per $1,000 principal amount, based on a conversion rate of 31.9020 shares per $1,000 principal amount converted multiplied by $38.50 per share.

The company’s stock (Nasdaq: SPNC) closed at $38.45 per share on Monday.

Wells Fargo Bank, NA is the trustee.

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

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