A Medical Device Daily

Minrad International (Orchard Park, New York) reported that it has entered into agreements to sell an aggregate of $40 million of senior secured convertible notes with a group of institutional accredited investors in a private placement.

The notes pay an 8% coupon, have a three-year maturity and a conversion price of $2.65 a share. The aggregate net proceeds of the notes, after deducting the placement agents' fees and estimated offering expenses payable by Minrad, are expected to be about $36.7 million.

The company said it plans to use the net proceeds of the financing to retire its obligations under its current $15 million senior notes with Laminar Direct Capital and for working capital and general corporate purposes.

Lehman Brothers served as placement agent for Minrad in the transaction.

Minrad is an interventional pain management company specializing in real-time image guidance, anesthesia and analgesia, and conscious sedation product lines.

BioForm Medical (San Mateo, California) reported that lock-up agreements entered into with its underwriters in conjunction with its previously disclosed IPO (Medical Device Daily, Nov. 16, 2007) will be extended 18 days beyond the company's May 1 earnings release.

The lock-up period was due to expire on May 3, but the company's underwriting agreement provided for an extension, depending on the timing of BioForm's quarterly earnings press release.

The first sales of shares restricted by the underwriters' lock-up may take place on May 20. About 33 million shares will become eligible for sale in the public market upon expiration of the lock-up, of which about 10 million shares will be freely tradable under Rule 144(b) and the remainder will be held by affiliates and other stockholders subject to the volume and other restrictions of Rule 144.

An additional number of shares equal to less than 5% of the shares outstanding prior to the November 2007 IPO were either not subject to a lock-up agreement or were subject to a lock-up agreement with the company, the terms of which were less restrictive than the lock-up agreement with the underwriters, and, as such, became freely tradable on Monday.

Last November, the company closed on an 11.5 million-share IPO, including over-allotments, resulting in net proceeds of about $83.4 million. The company filed for the IPO last August (MDD, Aug. 23, 2007).

J.P. Morgan Securities and Piper Jaffray & Co. served as joint book-running managers for the offering, with CIBC World Markets Corp. and Jefferies & Co. serving as co-managers.

BioForm is a company developing products designed to enhance aesthetic procedures performed in dermatology and plastic surgery practices. Its lead product is Radiesse, a dermal filler for use in facial aesthetics.

The company is developing several future aesthetics products, including a nerve ablation device for frown lines, a sclerotherapy treatment for spider veins, and a surgical adhesive for brow lifts.