San Clemente, Calif.-based Glaukos is offering the notes, due in 2027, only to qualified institutional buyers with a 13-day option for initial purchasers to purchase up to an additional $30 million in notes, according to a news release.
In connection with the pricing, the ophthalmic medical technology and pharmaceutical company expects to enter into privately negotiated capped call transactions with one or more initial purchasers and their affiliates. Those transactions cover the number of shares of common stock initially underlying the notes in an effort to reduce potential dilution.
Glaukos plans to use the proceeds to pay the cost of the capped call transactions, with the remainder earmarked for general corporate purposes. If the options are exercised, the company expects to use a portion of those proceeds to enter into additional capped call transactions.
The notes in the offering will be Glaukos’ senior unsecured obligations with a maturity date set for June 15, 2027. Glaukos may not redeem the notes before June 20, 2024.