The San Diego-based continuous glucose monitoring system developer announced earlier this week that it was offering $850 million in notes with plans to offer note purchasers a 13-day option to buy up to an additional $150 million aggregate principal amount of notes.
A day later, the company increased the aggregate principal amount and granted a 13-day option to purchase up to an additional $157.5 million in notes, upsizing the total to the $1.05 billion it sold.
DexCom expects that the net proceeds will total approximately $1.03 billion, or $1.19 billion if the initial purchasers exercise their option to purchase the additional notes. The company used approximately $282.6 million of the proceeds to pay the cash consideration and issued more than 1.9million shares of its common stock to repurchase or exchange approximately $260 million of its existing 0.75% senior notes due 2022.
The remainder of the proceeds from the offering are earmarked for capital expenditures, working capital and other general corporate purchases, which may include in-licensing or acquisitions of or investments in other businesses, products or technologies, according to an SEC filing.