By Chris Wack
Lantheus Holdings Inc. shares were down 10% to $55.21 Monday after the company said it intends to offer $500 million of convertible senior notes due 2027.
The notes will be offered and sold only to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933, the Massachusetts company said.
Initial purchasers may also be granted an option to purchase--within the 13-day period beginning on, and including, the initial closing date of the offering--up to an additional $75 million in aggregate principal amount of notes.
The notes will be senior unsecured obligations of the company, fully and unconditionally guaranteed on a senior unsecured basis by Lantheus Medical Imaging Inc., a direct wholly owned subsidiary of the company.
The notes will mature on Dec. 15, 2027, unless earlier redeemed, repurchased or converted, and are expected to pay interest semi-annually in arrears, the company said.
Lantheus said it intends to use a portion of the proceeds for general corporate purposes, including repurchases of its common stock from time to time in an amount up to $75 million, working capital, capital expenditures, refinancing and debt repayment.
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(END) Dow Jones Newswires