Insulet Reports $125 million Pricing of Convertible Notes

June 27, 2011 - Medical Device Daily

Insulet (Bedford, Massachusetts) reported the pricing of a public offering of $125 million principal amount of convertible senior notes due 2016, an increase from the $110 million principal amount previously disclosed.

The notes will bear interest at an annual rate of 3.75% and will mature on June 15, 2016, unless earlier converted, purchased or redeemed. Insulet also granted the underwriter an option to purchase up to an additional $18.75 million principal amount of notes to cover over-allotments, if any.

Insulet also disclosed the pricing of a concurrent public offering of 1,153,420 shares of its common stock by stockholders who received the shares as partial consideration in connection with Insulet’s previously reported acquisition of Neighborhood Diabetes at a price per share of $19.77 (Medical Device Daily, June 3, 2011). The completion of the common stock offering is not contingent upon the completion of the notes offering and the completion of the notes offering is not contingent upon the completion of the common stock offering.

Insulet said it intends to use the net proceeds from the notes offering for general corporate purposes, including to repurchase nearly $70 million principal amount of its outstanding 5.375% convertible senior notes due 2013 for approximately $85 million pursuant to individually negotiated transactions. The repurchase is expected to take place concurrently with the notes offering. Insulet will not receive any of the proceeds from the common stock offering.