Merit Medical Systems (Nasdaq:MMSI) confirmed in an SEC filing today that it closed an offering worth $747.5 million.
The South Jordan, Utah-based disposable medical device maker announced earlier this week that it was offering $650 million in 3% senior convertible notes. It upsized the offering from a previously set price of $550 million. Included in the $650 million offering of notes, due 2029, was an option to purchase up to nearly $100 million more.
The notes bear 3% interest per year, payable semi-annually in arrears on Feb. 1 and Aug. 1 of each year, starting in August 2024.
Merit Medical’s SEC filing confirmed that the purchasers exercised their options in full, adding $97.5 million to the total amount sold.
After deducting discounts and commissions, Merit anticipates net proceeds of approximately $725.1 million. It intends to use a chunk of the proceeds to pay the cost of entering into capped call transactions. Merit intends to use approximately $57.9 million in proceeds to pay the cost of the capped call transactions.
The company set aside the remainder of the proceeds for general corporate purposes. That could include repayment or reduction of existing debt, sales and marketing activities, medical affairs and educational efforts, R&D, clinical studies, working capital and capital expenditures.
Merit could also use the funds for investments in and acquisitions of other companies, products or technologies in the future. However, the company has no commitments with respect to any acquisitions at this time.