A Medical Device Daily

Angiotech Pharmaceuticals (Vancouver, British Columbia) reported that it intends to offer $250 million in aggregate principal amount of senior subordinated notes due 2014 in a private placement, subject to market and other conditions.

The notes will be guaranteed on a senior subordinated basis by certain of Angiotech's direct and indirect subsidiaries.

The company said it expects the offering, which is conditioned upon the acquisition of American Medical Instruments Holdings (AMI; Lake Forest, Illinois), to be completed in late March (Medical Device Daily, Feb. 2, 2006). The net proceeds of the offering will be used to finance in part the company's acquisition of AMI, repay that company's existing debt and pay fees and expenses related to the acquisition and the issuance of the notes.

Angiotech Pharmaceuticals is a specialty pharmaceutical company pioneering the combination of pharmaceutical compounds with medical devices and biomaterials.

ProUroCare Medical (Minneapolis), a development-stage company developing vision and sensing technologies to increase the safety and efficacy of diagnostic and therapeutic prostate procedures, reported that it has closed on its first tranche of its $6 million senior debt facility.

The company said it already has closed on $2.2 million of the pending $6 million facility and that additional commitments were in place for a “significant portion“ of the balance of the financing.

The company said it intends to use the net proceeds to finance the completion of its prostate imaging system, the ProUroScan, as well as to fund continued development of a vision technology for thermal therapy systems to treat prostate-related diseases.

The vision technology is being developed under a joint development agreement with Urologix (Minneapolis) and Rensselaer Polytechnic Institute (Troy, New York) disclosed last year.

The financing comes in the form of a senior secured long-term bank loan provided by Crown Bank (Edina, Minnesota). The loan is secured by the assets of the company and guaranteed by a limited number of accredited investors, who were issued two-year unsecured convertible subordinated debentures in consideration for providing their guarantees on the debt facility.

The company said it expects to complete the remainder of the $6 million financing in the near future.

In other financing news:

• ThermoGenesis (Rancho Cordova, California) reported that the underwriters of the company's previously disclosed $30.1 million, 8 million-share offering (Medical Device Daily, Feb. 1, 2006) exercised the over-allotment option for an additional 800,000 shares of the company's common stock.

Net proceeds before expenses from the exercise of the over-allotment added $3.2 million to the offering total. Upon completion of the offering, ThermoGenesis had 54,784,192 shares issued and outstanding.

The book-running manager of the offering was Deutsche Bank Securities. Jefferies and Co. was co-manager.

ThermoGenesis makes automated blood-processing systems and disposables that enable the manufacture, preservation and delivery of cell and tissue therapy products.

• Life Sciences Research (LSR; East Millstone, New Jersey) reported that it has secured new long-term financing of $70 million.

The company said the net proceeds of the loan, about $63 million, would be used to redeem the $46.2 million outstanding principal amount of HIH 7.5% convertible capital bonds, which are due to mature in September, and for general corporate purposes.

The loan matures on March 1, 2011, and bears an interest rate of 8.25% over LIBOR, which may be reduced to 8% over LIBOR upon the company meeting certain financial tests. The loan has standard financial and business covenants.

LSR is a global contract research organization providing product development services to the pharmaceutical, agrochemical and biotechnology industries.

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