NuVasive Inc. (NSDQ:NUVA) said today it is planning a $550 million financing round through the offering of convertible senior notes, due 2021.
The company said it will allow a 13-day over-allotment option for up to an additional $100 million aggregate principal amount of the convertible notes as well.
The convertible notes will be generally unsecured obligations of NuVasive, with interest paid semiannually in arrears, the company said.
A portion of the funds raised in the round will be used to pay the cost of the convertible note hedge transactions, the company said.
Along with the offering, but in a separate transaction, NuVasive said it will use a portion of the net proceeds from the offering to repurchase $325 million in princpal amount of its outstanding $402.5 million aggregate princpal amount of its convertible senior notes due 2017.
NuVasive said it expects that it may use up to $400 million for such purchases, according to a press release.
On Monday, NuVasive said it will acquire its Brazilian distributor Mega Surgical, hoping to close the transaction during the 1st quarter of this year.
Mega Surgical, located in Rio de Janeiro, Brazil, was founded in 1996 as an implantable medical device distribution company, and began partnering with NuVasive in 2008. Currently, Mega Surgical is the exclusive distributor of NuVasive products in Brazil.
