Insulet (NSDQ:PODD) up-sized the private placement that it announced yesterday, citing strong investor demand.
The Billerica, Mass.-based company said today it plans to offer $350 million in convertible senior notes due in 2024, up from $300 million.
The notes have an annual interest rate of 1.375% and will mature on Nov. 15, 2024, according to Insulet. The company also gave initial buyers the option to purchase an additional $52.5 million in notes.
The notes will be convertible until Aug. 15, 2024 and the conversion rate will initially be 10.7315 shares of common stock per $1,000 of notes, Insulet reported. After conversion, the notes may be settled in cash, as shares of common stock or a combination of the two.
The company said it could reel in as much as $391.4 million if initial buyers exercise their option to buy additional notes in full.
According to Insulet, the company plans to use $99 million of the offering’s net proceeds to repurchase $63.4 million of outstanding 2% convertible senior notes due in 2019. The rest of the offering’s proceeds are slated for general corporate purposes, including investments in the company’s manufacturing operations and international expansion.
