A Medical Device Daily
deCode genetics (Reykjavik, Iceland) reported that it has obtained commitments from several new and existing institutional investors to purchase $30 million of its common stock.
deCode will sell 6 million shares at $5 a share, with net proceeds expected to be about $27.8 million. The transaction is subject to customary closing conditions and is expected to close on or about July 18, deCode said.
All of the shares of common stock are being offered by deCode in accordance with a registration statement filed with the U.S. Securities and Exchange Commission.
Lehman Brothers was lead placement agent and Thomas Weisel Partners co-placement agent.
deCode is a developer of genetic studies and genomic research leading to new therapeutics.
Micrus Endovascular (Sunnyvale, California) reported a public offering of about 1.27 million shares of the company's common stock at $11.89 a share. All of the shares are being offered by certain selling stockholders.
The company has granted the underwriters a 30-day option to purchase up to an additional 190,531 shares of common stock to cover over-allotments, if any.
Micrus will not receive any of the proceeds from the sale of the stock by the selling stockholders, but if the over-allotment option is exercised by the underwriters, the company intends to use the proceeds for working capital and general corporate purposes, geographic expansion and potential acquisitions.
A.G. Edwards & Sons and CIBC World Markets were joint book-running managers for the offering, and Needham & Co. was co-manager.
Micrus manufactures implantable and disposable medical devices used in the treatment of cerebral vascular diseases. Its products are used by interventional neuroradiologists and neurosurgeons primarily to treat cerebral aneurysms responsible for hemorrhagic stroke.
In other financing activity:
• United Surgical Partners International (USPI; Dallas) reported launch of a tender offer and consent solicitation for its outstanding senior subordinated notes, financed with the proceeds of a new $200 million credit facility that USPI said it expects to enter into this month.
Total cost of the offer is expected to be about $160 million, assuming all notes are purchased. USPI said the balance of proceeds from the new credit facility would be used to repay existing debt under USPI's revolving credit facility.
USPI's subsidiary, United Surgical Partners Holdings, has commenced a cash tender offer for any and all of its outstanding 10% senior subordinated notes, due 2011, as well as a related consent solicitation to effect certain amendments to such notes.
The solicitation will expire at 5 p.m. EST, July 27, unless extended or terminated. The tender offer will expire at midnight EST, Aug. 10, unless extended or terminated.
The consideration for each $1,000 principal amount of notes validly tendered and accepted for payment shall be an amount in cash equal to the price, based on the assumption that the notes will be redeemed in full at $1,050 per $1,000 amount of notes, and that the yield to the earliest redemption date is equal to the sum of the yield to maturity on the 2.875% U.S. Treasury Note, due Nov. 31, based on the bid side price for such U.S. Treasury Note as of 11 a.m., EST, on the fourth business day prior to the offer expiration date, plus a fixed spread of 0.50%.
The consideration includes a payment of $30 for each $1,000 principal amount of notes delivered.
United Surgical PartnersHoldings has retained Bear, Stearns & Co. to act as dealer manager for the tender offer.
• LHC Group (Lafayette, Louisiana), a provider of post-acute healthcare services primarily in rural markets in the southern U.S., reported the pricing of its public offering of 4 million shares of common stock at $19.25 a share.
Of the 4 million shares of common stock offered, 1 million shares are being offered by the company, with the remaining 3 million shares being sold by selling stockholders. The underwriters have the option to purchase up to 150,000 additional shares of common stock from the company and an additional 450,000 shares of common stock from certain selling stockholders to cover over-allotments, if any.
The company said it would use net proceeds from the offering to fund possible acquisitions and for other general corporate purposes. LHC will receive no proceeds from the sale of shares by the selling stockholders.
Jefferies & Co. was book-running manager, CIBC World Markets and Stifel, Nicolaus & Co. were co-managers.
LHC provides home-based services through its home nursing agencies and hospices, and facility-based services through its long-term acute-care hospitals and rehabilitation facilities.
Humana to cover Cambridge Heart's MTWA test
Cambridge Heart (Bedford, Massachusetts), developing products for the noninvasive diagnosis of cardiac disease, reported that Humana (Louisville, Kentucky) has issued a coverage policy on Microvolt T Wave Alternans (MTWA) testing, agreeing to cover the test for its beneficiaries.
Humana's policy states: “Humana members would be eligible under the Plan for MTWA testing using the spectral analytic method for the evaluation of risk of sudden cardiac death when the member meets the criteria for ICD placement.“
Clinical research has shown that patients with symptoms of or, who are at risk of, life-threatening arrhythmias who test positive for T-wave alternans are at significant risk for subsequent sudden cardiac events including sudden death, while those who test negative are at minimal risk.