A Medical Device Daily
Inverness Medical Innovations (Waltham, Massachusetts) reported that underwriters exercised their over-allotment option in full to purchase another 900,000 shares of its common stock in connection with its initial public offering that priced earlier this month (Medical Device Daily, Jan. 29, 2007) and closed on Jan. 31.
Including the over-allotment shares being purchased, the company sold 6.9 million shares at $39.65 a share for gross proceeds of about $273.59 million.
The exercise of the over-allotment option is expected to close on Feb. 5, subject to customary conditions.
Jefferies & Co. and UBS Investment Bank acted as joint book-running managers for the offering. Cowen and Co. and Leerink Swann & Co. acted as co-managers for the offering.
Inverness is a developer of diagnostic devices, exploring opportunities for its electrochemical and other technologies in a variety of professional diagnostic and consumer-oriented applications
Kyphon (Sunnyvale, California) reported the pricing of its $175 million aggregate principal amount of convertible senior notes, due 2012, and $175 million aggregate amount of convertible senior notes, due 2014, in a private offering (MDD, Feb. 1, 2007).
Based on an initial conversion rate of 17.1951 shares of common stock per $1,000 principal amount of notes, equivalent to an initial conversion price of about $58.16 a share, Kyphon granted to the initial purchasers a 30-day option to purchase up to $25 million principal amount of additional notes of each series to cover over-allotments.
Interest on the notes, due 2012, will be paid semiannually at 1% per year, and interest on the notes, due 2014, will be paid semiannually at 1.25% per year. Holders of the notes may require Kyphon to repurchase the notes for cash equal to 100% of the principal amount to be repurchased plus accrued and unpaid interest upon the occurrence of certain types of fundamental changes.
The company said it expects to use a portion of the proceeds of the offering to pay the cost of the convertible note hedge transaction. This cost will be partially offset by proceeds that Kyphon expects to receive from the sale of the warrants.
The company said it may also enter into additional warrant transactions, which would result in bringing it additional proceeds.
It said it expects to use the remaining net proceeds of the offering to retire $310 million of the $425 million senior syndicated bank term loan used to complete the recent $525 million acquisition of St. Francis Medical Technologies (Alameda, California) (MDD, Jan. 22, 2007).
In other financing news:
• Newport (Irvine, California) reported that it intends to offer, subject to market and other conditions, about $150 million in convertible subordinated notes, due 2012, through an offering to institutional buyers. The interest rate, conversion terms and offering price are to be determined by negotiations between Newport and the initial purchaser of the notes.
Newport said it also intends to grant the initial purchaser of the notes a 30-day option to purchase up to another $25 million amount of notes, to cover over-allotments.
The company said it would use up to $48.2 million of the proceeds from the offering to prepay all indebtedness owed to Thermo Electron (Waltham, Massachusetts) and $40 million of proceeds to purchase shares of the company’s outstanding common stock. Newport said it will use any remaining proceeds of this offering for working capital and other general corporate purposes, including potential acquisitions.
Newport develops technology products and solutions for fields such as research, life and health science, aerospace and defense, industrial manufacturing, semiconductors and microelectronics.
• Cardinal Health (Dublin, Ohio), a provider of products and services supporting healthcare, reported its board has increased the company’s share repurchase authorization from $3 billion to $4.5 billion and declared its 90th consecutive quarterly dividend.
Cardinal said it expects to use the proceeds from the sale of its Pharmaceutical Technologies and Services segment to repurchase Cardinal shares.
During a meeting on Jan. 31, the board authorized an additional $1.5 billion, bringing the company’s total repurchase authorization to $4.5 billion. To date in FY07, the company has purchased nearly $1 billion in shares.
Cardinal manufactures pharmaceuticals and medical supplies, offers a range of clinical services and develops automation products designed to improve the management and delivery of supplies and medication for hospitals, physician offices and pharmacies.
• Mindray Medical International (Shenzhen, China), a developer of medical devices in China, reported the pricing of its secondary offering of 9,827,220 American Depositary Shares (ADSs) at $24.50 per ADS.
Each ADS represents one Class A ordinary share, par value HK$0.001 per share, of Mindray. All of the ADSs in this offering are being offered and sold by the selling shareholders of Mindray. Mindray will not receive any proceeds from the sale of the ADSs in this offering.
Goldman Sachs (Asia), J.P. Morgan Securities and UBS are the joint bookrunners for the offering. The underwriters have a 30-day option to purchase another 1,474,083 ADSs from the selling shareholders in this offering.
Established in 1991, Mindray offers products across three primary business segments: patient monitoring, diagnostic laboratory instruments, and ultrasound imaging.