Summary
Boston Scientific Corporation (BSX) filed an 8-K on May 27, 2020, detailing the successful completion of a public offering that raised approximately $1.95 billion in net proceeds. The offering included both common stock and mandatory convertible preferred stock. A significant portion of these proceeds, $750 million, was used to fully repay a term loan credit facility, with the remaining funds earmarked for general corporate purposes, including potential debt refinancing, acquisitions, and investments. The filing also introduced the terms and conditions of the 5.50% Mandatory Convertible Preferred Stock, Series A. This preferred stock is set to automatically convert into common stock by June 1, 2023, based on a predetermined price range, subject to market conditions. The company has outlined dividend provisions and liquidation preferences for this preferred stock, with dividends initially payable in common stock due to existing credit agreement restrictions.
Key Highlights
- 1Completed a public offering of common stock and mandatory convertible preferred stock on May 27, 2020.
- 2Net proceeds from the offerings totaled approximately $1.95 billion.
- 3Used $750 million of proceeds to fully repay a term loan credit facility and terminated it.
- 4Remaining proceeds will be used for general corporate purposes, including potential debt repayment, acquisitions, and investments.
- 5Introduced 5.50% Mandatory Convertible Preferred Stock, Series A, which will automatically convert into common stock by June 1, 2023.
- 6Mandatory Convertible Preferred Stock has defined dividend rights and liquidation preferences.
- 7Initial dividends on the preferred stock will be paid in common stock due to credit agreement restrictions.