UTICA, N.Y., Nov. 4 /PRNewswire-FirstCall/ -- CONMED Corporation
(Nasdaq: CNMD) announced today that it has priced its offering, in a private
placement, of $125 million in aggregate principal amount of 2.50% convertible
senior subordinated notes due 2024. In addition, the Company has granted the
initial purchasers a 13-day option to purchase up to an additional $25 million
of 2.50% convertible senior subordinated notes.
The convertible notes will be subordinated unsecured obligations of the
Company and will be convertible under certain circumstances into a combination
of cash and common stock of the Company. In general, upon conversion, the
holder of each note would receive the conversion value of the note payable in
cash up to the principal amount of the note and common stock of the Company
for the note's conversion value in excess of the principal amount.
The convertible notes will mature on November 15, 2024 and will not be
redeemable by the Company prior to November 15, 2011. The holders of the
convertible notes will be able to require the Company to repurchase some or
all of the convertible notes on November 15, 2011, 2014 and 2019.
The Company intends to use approximately $90 million of the net proceeds
from the offering to repay borrowings under its senior credit agreement and
intends to use approximately $30 million of the remaining net proceeds to
repurchase its common stock in privately negotiated transactions. Any
remaining proceeds not used to repay debt or repurchase shares will be used by
the Company for working capital and general corporate purposes.
The convertible notes are being offered and sold only to qualified
institutional buyers in accordance with Rule 144A under the Securities Act of
1933, as amended. The convertible notes and the underlying common stock
issuable upon conversion have not been registered under the Securities Act or
any applicable state securities laws and may not be offered or sold in the
United States, absent registration or an applicable exemption from such
registration requirements. This announcement is neither an offer to sell nor
a solicitation of an offer to buy any of the securities to be offered.
Please note that this press release contains forward-looking statements
within the meaning of Section 21E of the Securities Exchange Act of 1934 that
represent the Company's current expectations and beliefs, including the
completion of the offering described above.
SOURCE CONMED Corporation
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Related links:
http://www.conmed.com
CONTACT:
Robert Shallish, Jr., Chief Financial Officer
of CONMED Corporation, +1-315-624-3206
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