Dec 10 2010
HeartWare International, Inc. (Nasdaq: HTWR, ASX: HIN) ("HeartWare") announced today the pricing of a public offering of $125 million principal amount of convertible senior notes due 2017 (the "notes") pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission ("SEC") yesterday. HeartWare announced today that it increased its previously announced offering of convertible senior notes due 2017 to $125 million in aggregate principal amount. HeartWare also granted the underwriters an option to purchase up to an additional $18.75 million principal amount of convertible notes to cover over-allotments, if any.
The notes will bear interest at a rate of 3.50% per annum and will mature on December 15, 2017. The notes will be convertible upon the occurrence of certain events and during specified periods. Upon conversion, HeartWare will pay or deliver, as the case may be, cash, shares of HeartWare's common stock or a combination thereof, at HeartWare's option.
The initial conversion rate will be 10.0000 shares of common stock per $1,000 principal amount of notes, which corresponds to an initial conversion price of $100.00, representing a conversion premium of approximately 23% based on the closing price of $81.31 on December 9, 2010. The conversion rate is subject to adjustment from time to time upon the occurrence of certain events.
The Company also announced the pricing of a concurrent public offering of 900,000 shares of HeartWare's common stock held by Apple Tree Partners I, L.P., one of HeartWare's existing stockholders, at a price per share of $81.31 pursuant to an effective shelf registration statement filed with the SEC yesterday. Apple Tree Partners I, L.P. has also granted the underwriters an option to purchase up to 100,000 additional shares to cover over-allotments, if any. The completion of the common stock offering is not contingent upon the completion of the notes offering and the notes offering is not contingent upon the completion of the common stock offering.
HeartWare intends to use the net proceeds from the notes offering for general corporate and working capital purposes, including, but not limited to, research and development, expansion of its manufacturing capabilities and/or licensing of or investment in complementary products, technologies or businesses. HeartWare will not receive any of the proceeds from the common stock offering.
J.P. Morgan Securities LLC is acting as the sole book-running manager for both the convertible notes and common stock offerings. Canaccord Genuity Inc., Lazard Capital Markets LLC and Wells Fargo Securities, LLC are acting as co-managers of the offerings.
Source:
HeartWare International, Inc.