Cantel Medical (NYSE:CMD) announced today that it intends to offer a private placement worth $150 million in convertible senior notes.
Little Falls, N.J.-based Cantel Medical notes intends to grant the initial purchasers of the notes, due in 2025, an option to purchase up to an additional $22.5 million in notes.
The unsecured notes will be unsubordinated obligations of the company, with semi-annually payable accrued interest in arrears. They will mature on May 15, 2025. The notes will be redeemable for cash at the company’s option at any time on or after May 17, 2023, in certain circumstances, according to a news release.
Cantel Medical intends to use the net proceeds for general corporate purposes, including the repayment of debt under its credit facilities as required by the second amendment to its credit agreement, which it entered into yesterday. The debt repayment will apply at least 50% of the amount by which the net proceeds exceed $100 million.
The company develops specialized medical device reprocessing systems for endoscopy and renal dialysis, advanced water purification equipment, disinfectants and cleaners and several more medical products.
