By Kenneth Lim
Boston, June 15 - Aspect Medical Systems Inc. priced $110 million of seven-year convertible senior notes cheaper than talk on Thursday to yield 2.5% with an initial conversion premium of 22.5%.
The convertibles were offered at par. The deal was talked at a coupon of 2.25% to 2.75% and an initial conversion premium of 25% to 30%.
There is an over-allotment option for a further $15 million.
Goldman Sachs was the bookrunner of the Rule 144A offering.
The convertibles are non-callable and may not be put.
The notes have dividend and takeover protection.
Aspect Medical, a Norwood, Mass.-based maker of the BIS anesthesia monitoring system, said it will use the proceeds to buy back about 2 million shares of its common stock from Boston Scientific, which will be left with about half of its current stake. The two companies earlier in the week ended their development alliance on the medical device.
| Issuer: | Aspect Medical Systems Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | Goldman Sachs
|
| Amount: | $110 million
|
| Greenshoe: | $15 million
|
| Maturity: | June 15, 2014
|
| Coupon: | 2.5%
|
| Price: | Par
|
| Yield: | 2.5%
|
| Conversion premium: | 22.5%
|
| Conversion price: | $19.07
|
| Conversion ratio: | 52.4294
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Price talk: | 2.25%-2.75%, up 25%-30%
|
| Pricing date: | June 14, after the close
|
| Settlement date: | June 20
|
| Distribution: | Rule 144A
|
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