A Medical Device Daily
St. Jude Medical (St. Paul, Minnesota) said it has commenced an offering of senior debt securities, subject to market and other customary conditions. The company intends to use the net proceeds from the offering for general corporate purposes, which may include the repayment of certain of its indebtedness and the repurchase of its outstanding common stock pursuant to its authorized $500 million share repurchase program, as was separately reported.
BofA Merrill Lynch is acting as active booking-running manager for the offering. A shelf registration statement relating to the offering was filed with the SEC on July 22, 2009.
St. Jude develops medical technology and services that focus on cardiac rhythm management, atrial fibrillation, cardiovascular and neuromodulation.
In other financings news, Prospect Medical Holdings (Los Angeles), which owns and operates five hospitals and manages the medical care of HMO enrollees in Southern California, reported the offering and pricing of $160 million in aggregate principal amount of its 12.75% senior secured notes due 2014 at an issue price of 92.335%.
The offering is expected to close on or about July 29, 2009. The company intends to apply the net proceeds of the sale of the notes, together with cash on hand, to repay the amount outstanding under its existing senior secured credit facility and to terminate its interest rate swap agreements.
Prospect operates five hospitals in the greater Los Angeles area and manages the medical care of about 183,200 individuals enrolled in HMO plans in Southern California, through a network of about 13,900 specialist and primary care physicians.