Advanced Medical buys back $181 million of 3.25%, 2.5% convertibles

By Susanna Moon

Chicago, Oct. 20 - Advanced Medical Optics, Inc. said it purchased $124 million principal amount of its 3.25% convertible senior subordinated notes due 2026 for $51.8 million and $57 million principal amount of its 2.5% convertible senior subordinated notes due 2024 for $45.3 million.

These repurchases were made in private deals with holders who had contacted the company, according to a press release.

"Through these actions, AMO was able to take advantage of favorable bond pricing and reduce total debt levels," Jim Mazzo, the company's chairman and chief executive officer, said in the release. "We intend to continue to take proactive steps to use our cash flows and other funding sources to efficiently accelerate our debt reduction."

The company said it does not plan to purchase any additional convertibles at this time but may do so from time to time at prevailing market prices through the open market or in private deals.

The repurchases were funded by drawing $97 million on the company's senior revolving credit facility.

The Santa Ana, Calif., company develops vision technologies, including a line of cataract/implant products and other products used in ocular surgery.

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