A Medical Device Daily
Kyphon (Sunnyvale, California) reported the closing of its offering of $200 million aggregate principal amount of convertible senior notes, due 2012, and $200 million aggregate principal amount of convertible senior notes due 2014 that were privately offered to qualified institutional buyers.
The financing was first disclosed last week (Medical Device Daily, Feb. 1, 2007)
The notes of each series include $25 million aggregate principal amount of notes sold to the initial purchasers pursuant to an over-allotment which was exercised in full.
Kyphon estimated that the net proceeds from the offering, including proceeds resulting from the exercise of the initial purchasers' over-allotment option, will be about $390 million, after deducting discounts, commissions and estimated expenses. In addition, the warrant transactions resulted in gross proceeds to Kyphon of about $77 million. Kyphon used roughly $112 million of the combined net proceeds of the offering and proceeds from the sale of warrants to fund the cost of the convertible note hedge transactions. It said it intends to use the remaining proceeds of about $355 million, together with revolver borrowings under its $250 million senior secured credit facility, to retire the $425 million senior secured term loan incurred to complete the acquisition of St. Francis Medical Technologies (Alameda, California).
Bruker BioSciences (Billerica, Massachusetts) reported pricing a public offering of 10.4 million shares of its common stock, 2.2 million of which are being sold by the company and 8.2 million by four selling stockholders, at $7.10 a share, generating net proceeds of about $14.7 million to the company and about $54.9 million to the selling stockholders.
The company has granted the underwriters an option to purchase up to another 330,000 shares of common stock and the selling stockholders have granted the underwriters an option to purchase up to another 1.23 million shares of common stock to cover any over-allotments, which would generate additional net proceeds to the company of about $2.2 million and additional net proceeds to the selling stockholders of roughly $8.3 million, if exercised in full.
The company said it expects to use the net proceeds from this offering for general corporate purposes, potential acquisitions and for the repayment of debt.
Bear, Stearns & Co. and UBS Investment Bank are acting as joint bookrunning managers for this offering.
Bruker BioSciences is the publicly traded parent company of Bruker Daltonics Bruker AXS and Bruker Optics.
In other financings news:
Medical simulator start-up Simbionix (Lod Israel; Cleveland) reported raising $3 million in a financing round led by Cleveland-based Early Stage Partners. Astro Manufacturing (Eastlake, Ohio), Simbionix's U.S. partner, which manufactures the company's products, also participated in the round.
Simbionix develops training simulators for doctors and nurses. The company had $6 million to $7 million in sales in 2005 and reported that growth in 2006 was more than 20%, and it predicted 40% growth in 2007.
Simbionix sells its products in 35 countries. The company says it develops its simulators in collaboration with makers of minimally invasive medical devices.