Merit Medical (NSDQ:MMSI) early this week announced an upcoming offering, looking to raise $136.5 million with funds slated to repay outstanding debt.
The South Jordan, Utah-based company will look to float 4.5 million shares of common stock with a 30-day underwriter’s option to purchase an additional 675,000 shares. The shares will be offered to the public at $28.25 while the underwriters will be offered shares at $26.55 per share.
Merit Medical said that the underwriters have fully exercised their option to purchase the additional shares offered, and that it expected the round to close March 28.
Proceeds from the round are slated to be used to repay debt under its existing credit facility, according to a press release.
Last month, Merit Medical posted 4th-quarter results that beat the consensus forecast on Wall Street, sending share prices to a 52-week high.
The medical device company said profits were up 17.1% to $7.5 million, or 17¢ per share, on sales of $157.7 million for the 3 months ended Dec. 31, for top-line growth of 14.0% compared with Q4 2015.
Adjusted to exclude 1-time items, earnings per share were 31¢, 7¢ ahead of the consensus on The Street, where analysts were looking for sales of $157.3 million.
Full-year results, however, missed the forecast. Merit reported a -15.5% profit slide to $20.1 million, or 45¢ per share, on sales growth of 11.4% to $603.8 million compared with 2015. Adjusted EPS came in at $1.01, 13¢ beneath The Street, which settled on $663.4 million as a sales target.