Cantel Medical (NYSE:CMD) announced today that it sold $28 million in aggregate principal amount of convertible senior notes.
The 3.25% convertible senior notes due in 2025 are pursuant to the full exercise by the initial purchasers of their option to purchase additional notes.
Cantel Medical has issued a total of $168 million in aggregate principal amount of the notes after announcing its intent to offer a private placement worth $150 million last week. In that announcement, Cantel Medical said 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.
The company said in a news release that the net proceeds from the sale announced today reached approximately $27.2 million after deductions and before the cost of offering expenses payable to the company.
Cantel Medical expects to use the net proceeds for general corporate purposes, including the application of 50% of the amount to the repayment of debt under its credit facilities.
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.