A Medical Device Daily

OPKO Health (Miami) reported that it has entered into definitive agreements to raise an aggregate of $30 million in a private placement transaction. Under the terms of the investment, the company agreed to issue nearly 1.2 million shares of an 8.0% Series D cumulative convertible preferred stock, par value $0.01, at a purchase price of $24.80 a share, and warrants to purchase an aggregate of nearly 3 million shares of the company's common stock.

Shares issued in the investment, including the shares of the company's common stock into which the preferred shares and warrants may be converted, are subject to a three year contractual lockup, with no registration rights.

In other financing activity, Tenet Healthcare (Dallas) reported that it has commenced a public offering, subject to market and other conditions, of $300 million of mandatory convertible preferred stock. The offering will consist of 300,000 shares with a liquidation preference of $1,000 per share. The company intends to grant the underwriters of the offering a 30-day option to purchase up to an additional 15% of the offered amount of shares of mandatory convertible preferred stock from the company. Goldman, Sachs & Co. (New York) will serve as the sole bookrunning manager of the offering.

Unless converted earlier at the option of the holder or the company, the mandatory convertible preferred stock will convert automatically into a variable number of shares of the company's common stock on Oct. 1, 2012. The conversion rates, dividend rate and other terms of the mandatory convertible preferred stock will be determined by negotiations between the company and the underwriters.

The gross proceeds to the company from the mandatory convertible preferred stock offering are expected to be about $300 million. The company will use the net proceeds from the offering for repurchases of its outstanding senior notes through public or privately negotiated transactions.

The closing date for the offering is expected to be Sept. 25.