A Medical Device Daily
Natus Medical (San Carlos, California), a provider of devices for the newborn care, hearing and neurology markets, reported the pricing of its public offering of 4 million shares of its common stock at $19.50 per share.
All of the shares are being offered by Natus, which has granted the underwriters a 30-day option to purchase up to an additional 600,000 shares of its common stock to cover any over-allotments. If all the shares are exercised, the company would raise about $89.7 million before expenses.
The offering is expected to close on May 29, subject to the satisfaction of customary closing conditions.
The company said it expects to use the net proceeds from this offering for general corporate purposes, which may include the financing of acquisitions of, or investments in, companies and technologies that complement its business, capital expenditures and additions to its working capital.
The company also expects to use a portion of the proceeds to repay all of the remaining balance of about $22.9 million under its senior secured credit facility with Wells Fargo, which it entered into in November 2007 in order to fund its $63.5 million acquisition of Xltek (Oakville, Ontario).
Cowen and Co., and UBS Investment Bank are joint bookrunning managers for the offering and Natixis Bleichroeder, Needham & Co., Raymond James & Associates and Roth Capital Partners are co-managers.
In other financing news: NxStage Medical (Lawrence, Massachusetts), a manufacturer of dialysis products, reported a $43 million private placement of its common stock and warrants.
The private placement consists of 9.6 million shares of NxStage common stock at a price of $4.50 per share and warrants to purchase 1.9 million shares of common stock at an exercise price of $5.50 per share, which price may be adjusted to $3 or $6.50 depending upon whether the company achieves certain targets relating to the number of End Stage Renal Disease patients prescribed to receive therapy with the NxStage System One as of Dec. 31, 2008.
The private placement will be closed in two tranches. The company has agreed to sell the first tranche of $25 million to funds managed or advised by OrbiMed Advisors on or before May 28. The company has agreed to sell the second $18 million tranche to existing NxStage institutional investors. This second tranche is subject to stockholder approval, and is expected to close during the third quarter, after NxStage holds a special meeting of its stockholders to approve this portion of the financing.
In connection with the closing of the private placement, NxStage has agreed to appoint one individual nominated by OrbiMed Advisors to fill the vacancy that currently exists on the company's board
Canaccord Adams served as the company's lead agent and financial advisor in connection with the private placement