Dexcom (NSDQ:DXCM) said that it completed the sale of $850 million of 0.75% convertible senior notes due 2023.
The San Diego, Calif.-based company expects to reel in roughly $836 million in net proceeds from the offering.
Dexcom used $35.1 million of the offering’s proceeds to pay the cost of the convertible note hedge transactions as described in its initial offering and $100 million of the proceeds to repurchase shares of the company’s common stock. The rest of the net proceeds will go toward capital expenditures, according to Dexcom.
Earlier this month, Dexcom announced that it would pay $250 million upfront in stock to Verily in an amended collaboration and licensing deal. The two companies are working to develop a second-generation continuous glucose monitoring system. The updated deal also notes that the companies could collaborate on additional products and software.
The new agreement structure makes Dexcom the preferred CGM device supplier for Verily’s Onduo franchise and its Type 2 diabetes management program.
According to the terms of the deal, Dexcom is slated to make an upfront payment of $250 million in shares of its common stock, with additional milestones of up to $280 million contingent upon product launch and revenue milestones.
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