The Marlborough, Mass.-based company is offering $750 million shares of common stock and $750 shares of Series A mandatory convertible preferred stock. It also expects to grant underwriters separate 30-day options to purchase up to an additional $112.5 million shares of common stock and another $112.5 million shares of preferred stock.
Each share of preferred stock is set at a liquidation preference of $100 per share. Unless earlier converted, each share will automatically convert into a variable number of shares of common stock on or around June 1, 2023, according to a news release.
The closing of each offering is not contingent upon the closing of the other offering. J.P. Morgan and BofA Securities are acting as joint book-running managers for the offerings.
Boston Scientific said it plans to use some of the net proceeds to repay in full the remaining $750 million outstanding under its $1.25 billion term loan credit facility maturing in April 2021 and to pay related fees. The remainder of the proceeds is earmarked for general corporate purposes.