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news.Medical technology company Hologic has closed its offering of $1.72 billion aggregate original principal amount of convertible senior notes due 2037, which amount included the exercise in full by the underwriters of the $225 million overallotment option granted to them by the company.
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The convertible senior notes mature in 2037 and will pay interest semiannually at a rate of 2% per annum until December 15, 2013, after which their principal will accrete at a rate of 2% per annum. Commencing with the interest period beginning December 15, 2013, the notes will also pay contingent interest under certain circumstances based on the trading price of the notes.
The notes have an initial conversion rate of 12.95 shares of common stock per $1,000 original principal amount of notes (equivalent to a conversion price of approximately $77.18 per share), subject to adjustment. The initial conversion price represents a 25% premium over the closing sale price of Hologic’s common stock on December 4, 2007. The notes were sold at par.
The net proceeds from the offering of approximately $1.69 billion, after deducting the underwriters’ discounts and estimated offering expenses payable by Hologic, were used to repay a portion of Hologic’s outstanding senior secured indebtedness.