Insulet Corp. said it raised $800 million in gross proceeds from a public offering of senior notes due 2026.
The Acton, Mass.-based manufacturer of insulin delivery systems said lenders exercised their option to buy an additional $100 million worth of the notes, pushing proceeds from $700 million to $800 million. The notes bear an annual interest rate of 0.375% and mature on Sept. 1, 2026.
The notes are convertible into shares of the company before June 1, 2026, under certain conditions and during specific periods. These conditions would be lifted past that date and the notes will be convertible regardless.
The starting conversion rate will be 4.4105 shares of common stock per $1,000 worth of principal amount of notes converted. Noteholders could either settle the notes in cash, shares of Insulet's common stock, or a combination of both once the notes are converted.
Insulet plans to use approximately $455.0 million worth of net proceeds from the notes and issue approximately 1.16 million shares of the company's stock to extinguish $225 million worth of principal amount of its 1.25% convertible senior notes due 2021.
