A Medical Device Daily
Diagnostics dynamo Inverness Medical Innovations (IMI; Waltham, Massachusetts) reported that it intends to offer $200 million of senior subordinated notes due 2016 in a public offering. Payment of the notes will be guaranteed by certain of IMI's domestic subsidiaries. The company said it intends to use the net proceeds from the offering primarily for general corporate purposes.
UBS Investment Bank, Goldman, Sachs & Co. and Banc of America Securities will act as joint book-running managers for the offering. Canaccord Adams, Leerink Swann and Stifel Nicolaus will serve as co-managers.
The offering will be made under IMI's shelf registration statement on Form S-3 filed with the SEC on April 10.
Pulse Systems (Concord, California) reported that the company has recently closed an $8.5 million credit facility through the Structured Finance Group at Fifth Third Bank. This new credit facility consists of a $7 million term loan and a $1.5 million revolving working capital line of credit.
"Accomplishment of this major re-financing is another important milestone for Pulse Systems, and marks our continued success in carrying out our long-term business strategy for the company," said Herb Bellucci, president/CEO of Pulse Systems.
Funds from the term loan will be used to pay off mezzanine debt incurred in the 2004 acquisition of the company by Chicago Venture Partners. The revolving line of credit is available to the company for working capital purposes and other short-term cash needs.
Pulse Systems provides precision laser cutting of tubular metal components for the medical device industry, including implantable devices such as endovascular stents. The company also supplies finishing processes such as laser welding, electropolishing, Nitinol shape-setting, microblasting, and Class 10,000 cleanroom assembly.
In other financings news, specialty bio-therapeutics company Haemacure (Montreal) reported that it has entered into a term sheet with Angiotech Pharmaceuticals (Vancouver, British Columbia) for a senior secured bridge loan from Angiotech in the amount of $2.5 million.
Haemacure said it expects that the bridge loan will enable it to operate for a period of about 10 to 12 months from the date of the closing of the loan. The bridge loan will be convertible into Haemacure securities in certain circumstances.
"This is great news for Haemacure. We look forward to closing this bridge financing and collaborating with Angiotech" said Joseph Galli, chairman/CEO of Haemacure.
The term sheet provides that the closing of the bridge loan is expected to take place by May 31. Completion of the transaction is conditional on standard closing conditions, including negotiation and execution of loan and security documentation and related collaboration agreements between Haemacure and Angiotech. In connection with the bridge loan, Angiotech has advanced $200,000 to Haemacure.
Haemacure is developing human plasma-derived protein products for commercialization. Haemacure's research and development effort is driven by its proprietary plasma protein extraction technology to develop next-generation products, including surgical haemostats. Its lead product candidate is a fibrin sealant in late-stage clinical trials. Its second product candidate is thrombin, a component of its fibrin sealant, now in preclinical stage. Follow-on development will focus on the use of fibrin sealant in aesthetics, adhesion prevention, combination with biomaterials, drug delivery, regenerative medicine, skin graft fixation for burn injuries, and wound healing.
Angiotech is a global specialty pharmaceutical and device.