A Medical Device Daily

Medtronic (Minneapolis) reported an offering of $550 million of its 4.50% senior notes due 2014, $400 million of its 5.60% senior notes due 2019 and $300 million of its 6.50% senior notes due 2039. Medtronic said it intends to use the net proceeds for general corporate purposes, including to repay a portion of outstanding commercial paper.

The notes will be senior unsecured and unsubordinated obligations of Medtronic and will rank equally with all of Medtronic's existing and future senior unsecured debt and senior to all of Medtronic's subordinated debt.

Pappas Ventures (Research Triangle Park, North Carolina) reported the final closing of its fourth fund, a $102 million venture capital fund focused on the life sciences sector. Like its immediate predecessor funds, Pappas Ventures IV will invest in product-oriented biopharmaceutical companies, with a secondary focus on medical technologies.

"We are very pleased to have reached this important milestone," said Eric Linsley, a partner at Pappas Ventures. "The new fund speaks to the strong support we have received from our investors both new and old and the track record that our firm has built over the past 15 years."

The North Carolina-based firm expects to invest in about 12 to 15 portfolio companies over the next several years. It is now actively evaluating potential investments.

In tandem with the closing, Pappas Ventures reported the promotion of two executives, Rosina Maar Pavia, MD, and Sean McCarthy, PhD, to partner and senior principal, respectively.

The firm also reported that partner Arthur Klausner will leave Pappas Ventures later this year.

Founded in 1994, Pappas Ventures invests exclusively in the life sciences sector biotechnology, biopharmaceuticals, drug delivery, medical devices and related ventures.

In other financing activity, Cytori Therapeutics (San Diego) said it has entered into definitive agreements to raise $10 million, before placement agent fees and offering expenses.

At closing, Cytori will issue and sell to select investors 4,771,174 units, with each unit consisting of one share of the company's common stock and 1.4 warrants, at a purchase price of $2.10 per unit. The warrants, which will represent the right to acquire up to an additional 6,679,644 shares of common stock, will be exercisable beginning six months after the closing of the transaction at an exercise price of $2.59 a share, which was Cytori's consolidated closing bid price per share on Monday, and will expire five years after the date the warrants are first exercisable.

Cytori said it would use the funds for sales and marketing activities related to the commercialization of its Celution System and consumables as well as other related and complementary products, for ongoing clinical studies of the Celution System for breast reconstruction and cardiovascular disease, for ongoing R&D to support its products and its pipeline development, and for general working capital.

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