Hologic greenshoe lifts 2% convertibles due 2037 to $1.725 billion

By Devika Patel

Knoxville, Tenn., Dec. 10 - Underwriters for Hologic, Inc.'s convertible senior notes due Dec. 15, 2037 exercised their over-allotment option in full for $225 million, increasing the size of the issue to $1.725 billion, the company said in a press release.

The convertibles have a conversion price of $77.1875 and a conversion ratio of 12.9555 and will pay interest semiannually at 2% per year until Dec. 15, 2013, after which the interest will accrue at 2% annually. The notes were priced with a 25% initial conversion premium.

The convertibles are callable beginning Dec. 18, 2013 at par. There are put options on Dec. 13, 2013 and Dec. 18 in each of 2017, 2022, 2027 and 2032.

The convertibles have full dividend protection in the form of a conversion ratio adjustment. There is fundamental change protection, but no public acquirer change-of-control waiver.

Goldman Sachs is the bookrunner of the registered transaction, which priced on Dec. 4.

Settlement was Monday.

The company plans to use the proceeds to repay outstanding senior secured debt.

Hologic is a Bedford, Mass.-based diagnostic, medical product and device maker that focuses on women's health.

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