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Hologic to issue new notes in exchange for 2% convertibles due 2037
By Susanna Moon
Chicago, Feb. 29 - Hologic, Inc. said it will issue $500 million principal amount of new 2% convertible senior notes due 2042 in exchange for the same amount of 2% convertible senior notes due 2037.
The company entered into separate privately negotiated exchange agreements to retire the notes issued Dec. 10, 2007, according to a press release.
Following the exchange, $775 million principal amount of the original notes will remain outstanding. The company will also have outstanding $450 million principal amount of its 2% convertible exchange senior notes due 2037, issued on Nov. 23, 2010.
The coupon for the new notes will be 2% until March 1, 2018, after which the principal will accrete at a rate of 2% per year. Beginning with the interest period beginning March 1, 2018, the new notes will also pay contingent interest under certain circumstances based on their then current trading price.
The new notes have an initial conversion rate of 32.07698 shares per $1,000 original principal amount of notes, which is a conversion price of about $31.175 per share. The initial conversion price represents a 45% premium over the closing sale price of Hologic's common stock on Feb. 28, the release noted.
The notes are callable beginning March 6, 2018. The notes are putable on March 1, 2018 and certain subsequent dates, and in other circumstances, at a price equal to the accreted principal amount of the new notes to be purchased plus any accrued and unpaid interest.
Hologic is a Bedford, Mass., company that develops, manufactures and supplies diagnostics, medical imaging systems and surgical products.
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