Dexcom (Nasdaq:DXCM) today announced that it intends to offer $1 billion in convertible senior notes due in 2028.
The continuous glucose monitor (CGM) maker made its private placement to persons reasonably considered qualified institutional buyers. San Diego-based Dexcom also plans to grant the initial purchasers of the notes an option to buy more. Those options fall within a 13-day period from, and including, the date of first issuance, for up to an additional $150 million.
Dexcom said in a news release that its notes are senior, unsecured obligations with interest payable semi-annually in arrears. The notes mature on May 15, 2028, unless earlier converted, repurchased or redeemed.
Dexcom earmarked a portion of its net proceeds to pay the cost of capped call transactions. If the initial purchasers exercise their option to buy additional notes, the company intends to use a portion of those proceeds to enter into additional capped call transactions.
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