Volcano greenshoe exercised, lifts convertible sale by $60 million

By Tali David

Minneapolis, Dec. 10 - Underwriters for Volcano Corp.'s 1.75% senior convertible note offering exercised their over-allotment option for $60 million, increasing the size of the issue to $460 million, according to an 8-K filed with the Securities and Exchange Commission.

The company priced an upsized $400 million offering on Dec. 5.

J.P. Morgan Securities LLC and Goldman Sachs & Co. were the joint bookrunners.

As previously reported, about $31.4 million of proceeds are being used to pay the cost of the hedge transactions, with up to $105 million of the proceeds going to repurchase up to $90 million of the company's outstanding 2.875% convertible senior notes due 2015.

Volcano may also use a portion of the proceeds to invest in or acquire complementary products, businesses, or technologies, while any remaining proceeds are intended for working capital and general corporate purposes.

Rancho Cordova, Calif.-based Volcano develops, manufactures and sells intravascular ultrasound and functional measurement products for vascular and structural heart disease.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.