A Medical Device Daily

Cytyc (Marlborough, Massachusetts) reported entering into a five-year multicurrency credit agreement providing for a $150 million senior unsecured revolving credit facility which it said will be used for general corporate purposes.

The agreement is with JPMorgan Chase Bank, National Association, as administrative agent; Bank of America as syndication agent, and a syndicate of four other lenders: Citizens Bank of Massachusetts, HSBC Bank USA, National Association, SunTrust Bank and Wells Fargo Bank, National Association.

Within the $150 million commitment are sub-limits for letters of credit and borrowings in other than the U.S. currency. And the company has the ability to increase borrowings under the agreement by up to an additional $150 million at its option, Cytyc said.

“Although no immediate plans to use the credit facility is anticipated, this agreement provides . . . the maximum financial flexibility to continue to grow our business while taking advantage of the favorable conditions in the credit markets,” said Patrick Sullivan, chairman, president and CEO.

Cytyc is a women's health company that manufactures products for cervical cancer screening, breast cancer risk assessment, treatment of excessive menstrual bleeding and treatment of breast cancer.

Systems Xcellence (SXC; Milton, Ontario) reported completing its public offering of 3.2 million common shares at $12.08 a share in the U.S. (C$13.50), bringing gross proceeds of about $38.7 million.

The company also granted underwriters an option to purchase another 480,000 common shares to cover over-allotments.

SXC said it intends to use about $12.8 million of the net proceeds to retire its credit facility (excluding any pre-payment penalty, which would not exceed $200,000), and the remainder for potential acquisitions, working capital and general corporate purposes.

SXC products include software applications, application service provider (ASP) processing services and professional services, designed for many of the largest organizations in the pharmaceutical supply chain.

UBS Investment Bank acted as the sole book running manager for the offering. JP Morgan acted as co-lead manager and William Blair & Co., SunTrust Robinson Humphrey, Sprott Securities, Orion Securities and Clarus Securities were co-managers.

In other financing activity: LHC Group (Lafayette, Indiana), a provider of post-acute healthcare services primarily in rural markets in the southern U.S., reported filing a preliminary prospectus supplement for an offering of 4 million shares of common stock in accordance with a shelf registration filed with the Securities and Exchange Commission.

Of the 4 million shares of common stock to be sold, 1 million shares are being offered by the company, with the remaining 3 million shares to be sold by the selling stockholders identified in the prospectus. The underwriters also have the option to purchase up to an additional 600,000 shares of common stock from the selling stockholders to cover over-allotments, if any.

LHC said it will use proceeds from the offering to fund possible future acquisitions and other general corporate purposes, which may include repaying indebtedness.

Jefferies & Co., is acting as sole book-running manager. CIBC World Markets Corp. and Stifel, Nicolaus & Company are acting as co-managers for the offering.

LHC provides home-based services through its home nursing agencies and hospices and facility-based services thro-ugh its long-term acute-care hospitals and rehabilitation facilities.

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