By Ronda Fears
Memphis, July 27 - Conor Medsystems, Inc. raised $96.25 million from the follow-on offering of 3.5 million shares at $27.50 apiece, discounted from Wednesday's close of $27.75, via joint bookrunners Citigroup Global Markets Inc. and Morgan Stanley & Co. Inc.
Of the 525,000 shares available through a greenshoe, 450,000 is being offered by Calmedica Capital, LP, which if exercised in full would reduce its stake in Conor to 0.6% from 2.0%. Based on the stock sale alone, the Calmedica stake would be diluted to 1.8%.
Conor chief executive Frank Litvack is a limited partner in Calmedica.
Menlo Park, Calif.-based Conor plans to use proceeds to fund the development of commercial-scale manufacturing facilities, to fund clinical development and other research and development activities, to build sales and marketing capabilities and for working capital and other general corporate purposes.
The company's current focus is on the development and commercialization of its cobalt chromium paclitaxel-eluting coronary stent system, CoStar, for the treatment of restenosis - the re-narrowing of the inner channel of the artery following balloon angioplasty.
Conor has signed agreements with Biotronik AG, Interventional Technologies Ltd. and affiliates of St. Jude Medical, Inc. to distribute the CoStar stent outside the United States; it was approved in Europe in February. The company plans to pursue commercialization in the United States with its own sales force, subject to regulatory approval.
| Issuer: | Conor Medsystems, Inc.
|
| Issue: | Follow-on stock offering
|
| Gross proceeds: | $96.25 million
|
| Net proceeds: | $89.9 million
|
| Shares: | 3.5 million shares
|
| Greenshoe: | 525,000 shares
|
| Price: | $27.50 per share
|
| Bookrunners: | Citigroup Global Markets Inc. and Morgan Stanley & Co. Inc.
|
| Co-managers: | Lehman Brothers Inc., Cowen & Co., LLC and CIBC World Markets Corp.
|
| Pricing date: | July 26
|
| Settlement date: | Aug. 1
|
| Stock symbol: | Nasdaq: CONR
|
| Stock price: | $27.75 on July 26
|
|
|
© 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.
