Summary
Boston Scientific Corporation (BSX) announced on May 21, 2020, the pricing of a significant public offering, comprising common stock and mandatory convertible preferred stock. This offering is a strategic move to strengthen its balance sheet and provide financial flexibility. The company intends to utilize a substantial portion of the net proceeds to repay its outstanding $750.0 million term loan, which is set to mature in April 2021. This repayment will eliminate a significant debt obligation and reduce future interest expenses. The remaining proceeds from the offering are earmarked for general corporate purposes. These purposes may include refinancing other existing debt, as well as funding strategic growth initiatives such as potential acquisitions and investments. This positions Boston Scientific to pursue opportunities and manage its capital structure proactively.
Key Highlights
- 1Pricing of a public offering of 25,550,000 shares of common stock.
- 2Pricing of a public offering of 8,750,000 shares of 5.50% Mandatory Convertible Preferred Stock, Series A.
- 3Underwriters have options to purchase additional shares of common stock and mandatory convertible preferred stock.
- 4Offering expected to close on May 27, 2020, subject to customary conditions.
- 5Intent to use a portion of proceeds to fully repay the remaining $750.0 million outstanding term loan maturing in April 2021.
- 6Repayment of the term loan will also cover related fees, expenses, and premiums, followed by the termination of the credit facility.
- 7Remaining proceeds will be used for general corporate purposes, including potential debt refinancing, acquisitions, and investments.