A Medical Device Daily
Inverness Medical Innovations. (IMI; Waltham, Massachusetts) has closed on a $1.3 billion credit facility with GE Healthcare Financial Services to support its acquisition of Biosite (San Diego) which it agreed to acquire back in May for $92.50 a share (Medical Device Daily, May 11, 2007).
GE Healthcare Financial Services serves as administrative agent for the facility. GE Capital Markets and UBS Investment Bank were joint lead arrangers for the facility.
The senior secured credit facilities included a $150 million revolving credit facility, $900 million first lien term loan, and a $250 million second lien term loan.
IMI used the proceeds to finance the acquisition of Biosite, refinance its existing indebtedness, and provide increased liquidity for its working capital needs.
“The combination of Inverness and Biosite, along with the pending stock for stock acquisition of Cholestech [Hayward, California] by Inverness, creates a broadened leadership position in the rapid diagnostics testing market,” said Ron Zwanziger, CEO/chairman of IMI.
IMI is a developer of advanced diagnostic devices and is presently exploring new opportunities for its proprietary electrochemical and other technologies in a variety of professional diagnostic and consumer-oriented applications including immuno-diagnostics with a focus on women’s health, cardiology and infectious disease.
U-Systems (San Jose, California), a developer of automated breast ultrasound systems, reported that it has completed a $16.5 million funding round led by Siemens Venture Capital. Other investors in this financing include existing U-Systems investors Sycamore Venture Capital, MDS Capital, Radius Ventures, Kinetic Capital and United Investments and new investors President International Development, iD Innovation, China Investment & Development Company and TSC Bioventures.
“This funding will enable us to expand our sales and marketing organizations as well as continue our investment in product development and clinical investigations,” said Joseph Pepper, president/CEO of U-Systems. “We are building on the momentum we achieved in 2006 with the introduction of our proprietary SomoVu automated breast ultrasound system, expanding our presence in the breast imaging marketplace.”
The company noted that breast ultrasound has long been established as the preferred modality for diagnostic breast imaging, especially in women with dense breasts. With the advent of the SomoVu, the company said that radiologists now have standardized, reproducible, 3-D views of the breast enabling improved diagnostic confidence.
“This automated approach could prove useful in women with breast implants and, ultimately, the potential exists to apply the technology to ultrasound imaging of other parts of the anatomy,” said managing partner Andrew Jay of Siemens Venture Capital.
In other financing news:
• AuthenTec (Melbourne, Florida), a provider of fingerprint sensors, reported the initial public offering of 7.5 million shares of its common stock priced at $11 per share.
The company is offering 5,625,000 shares and certain selling stockholders are offering 1,875,000 shares of common stock.
The common stock will begin trading today on the NASDAQ Global Market under the symbol AUTH. The offering is expected to close on or about July 2.
The company has granted the underwriters an option to purchase up to an additional 1,125,000 shares of common stock.
The company said it intends to use proceeds from the offering for general corporate purposes and will not receive any proceeds from the sale of the shares of common stock by the selling stockholders.
Lehman Brothers is acting as sole book-running manager and as the representative of the underwriters, which include Bear, Stearns & Co., Cowen and Co., Raymond James & Associates, and Montgomery & Co.
AuthenTec is a provider of fingerprint authentication sensors and solutions to the high-volume PC, wireless device, and access control markets.
• UQM Technologies (Frederick, Colorado), a developer of alternative energy technologies, reported that it has completed a private placement of 1.25 million shares of its common stock to Heartland Advisors on behalf of two of its advisory clients, Heartland Value Fund and Turn of the Tide, a Wisconsin Limited Partnership. Net cash proceeds to the company from the transaction were about $5.2 million.
UQM manufactures power dense, high efficiency electric motors, generators and power electronic controllers for the automotive, aerospace, medical, military and industrial markets.
• Fresenius Medical Care (Bad Homburg, Germany) reported the pricing of senior notes due 2017 in the amount of $500 million. The coupon will be 6-7/8%.
Proceeds will be used to reduce indebtedness under the company’s senior secured bank credit facility and other, short-term debt, it said.
The senior notes will be issued by FMC Finance III, a wholly owned subsidiary of the company, and will be guaranteed on a senior basis jointly and severally by the company, Fresenius Medical Care Holdings, and Fresenius Medical Care Deutschland.
Fresenius Medical Care is a provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 1.5 million individuals worldwide.
• Biogen Idec (Cambridge, Massachusetts) reported the preliminary results of its modified “Dutch Auction” tender offer which expired at midnight, EST, on Tuesday.
The company said it expects to accept for payment an aggregate of 56,428,198 shares of its common stock at a purchase price of $53 per share, for an aggregate share repurchase of about $3 billion. These shares represent about 16.4% of the shares outstanding as of June 25.
Based on a preliminary count by Computershare Trust Co., an aggregate of 56,428,198 shares were properly tendered and not withdrawn at or below $53, including 27,438,208 shares that were tendered through notice of guaranteed delivery.
Merrill Lynch & Co. and Goldman, Sachs & Co. acted as financial advisors on this transaction.
Biogen Idec has also obtained a commitment from Merrill Lynch Capital and Goldman, Sachs Credit Partners for up to a $1.5 billion term loan which will be used to partially finance the tender offer.
Biogen Idec said it creates new standards of care in therapeutic areas with high unmet medical needs.