A Medical Device Daily

Advanced Medical Optics (AMO; Santa Ana, California) reported reporchasing about $124 million principal amount of its 3.25% convertible senior subordinated notes, due 2026, for around $51.8 million, and about $57 million principal amount of its 2.5% convertible senior subordinated notes, due 2024, for around $45.3 million.

The repurchases were made in accordance with negotiated transactions with holders of the notes that had previously contacted AMO. The company funded the repurchases by drawing about $97 million on its senior revolving credit facility.

On Sept. 26, the company reported total debt outstanding of about $1.54 billion. Taking into account the draw down on the revolver and the bond purchases, AMO said it achieved a reduction in total debt of about $84 million. The company also said it has nearly $200 million in remaining borrowing capacity under its senior revolving credit facility.

"Through these actions, AMO was able to take advantage of favorable bond pricing and reduce total debt levels," said Jim Mazzo, CEO and chairman of AMO. "We intend to continue to take proactive steps to use our cash flows and other funding sources to efficiently accelerate our debt reduction."

The company said it does not intend to purchase any additional convertible notes at this time.

AMO makes devices for ophthalmology, including diagnostic instruments and products used in ocular surgery and laser vision correction.

VentriPoint Diagnostics reported that its wholly-owned subsidiary, VentriPoint (Seattle), has secured a $1 million one-year term loan from Joseph Ashley, president/CEO of VentriPoint.

The company said that proceeds from the loan will be used in part to support the beta trials of the VentriPoint diagnostic system, commenced this past week. It said the funds will provide the working capital to finance expansion of the beta trials into three other key sites, two in the U.S. and one in Europe, and to prepare for commercialization.

"We are optimistic that we will receive the necessary regulatory clearance to proceed with commercialization of the VentriPoint diagnostic system in Canada and Europe in January 2009," said Ashley.

Interest on the loan will accrue at 8% per year, deferred to loan maturity on Oct. 20, 2009. Optional conversion into subsequent offerings, contingent early retirement provisions and general terms are subject to requisite TSX Venture Exchange approval.

VentriPoint develops diagnostic tools for heart disease monitoring.

In other financing news: Response Biomedical (Vancouver, British Columbia) reported that, due to changing market conditions, it will, subject to the approval of the Toronto Stock Exchange, increase the number of units and lower the unit price and the warrant exercise price of a financing it first disclosed last week.

The number of units will be increased to 36.67 million units at 15 cents per unit, lowered from 18 cents, reported earlier. The warrant exercise price will be lowered to 20 cents per share from 25 cents per share.

Each unit will consist of one common share and one-half of one share purchase warrant, with each full warrant entitling the holder to acquire one additional common share of the company for a period of 36 months from the closing.

"We have implemented cost cutting measures and are in the process of implementing further cost cutting measures to extend our cash runway, while preserving our core business," said S. Wayne Kay, CEO of Response. "We have financial commitments from our partners, and we believe their support, coupled with this financing, will assist us in weathering the current state of the financial markets."

Response develops rapid on-site diagnostic tests for use with its RAMP Platform for clinical and environmental applications.