Summary
DexCom, Inc. (DXCM) filed an 8-K on March 7, 2007, to announce the pricing of an additional $20 million in aggregate principal amount of 4.75% Convertible Senior Notes due 2027. This follows a prior announcement on March 6, 2007, for $40 million of similar convertible notes, bringing the total offering to $60 million. The company intends to use a portion of the proceeds to enter into call spread transactions to mitigate potential dilution from the conversion of these notes.
Key Highlights
- 1DexCom announced the pricing of an additional $20 million in 4.75% Convertible Senior Notes due 2027.
- 2This brings the total aggregate principal amount of convertible notes issued to $60 million ($40 million on March 6th and $20 million on March 7th).
- 3The notes are offered in a private placement to qualified institutional buyers under Rule 144A.
- 4The company plans to use proceeds to engage in call spread transactions.
- 5These call spread transactions are designed to reduce potential dilution for shareholders upon conversion of the notes.
- 6The filing includes a press release detailing the pricing of the additional notes as an exhibit.
Frequently Asked Questions
DexCom issued a total of $60 million in aggregate principal amount of 4.75% Convertible Senior Notes due 2027. This consists of $40 million priced on March 6, 2007, and an additional $20 million priced on March 7, 2007.
DexCom intends to use a portion of the net proceeds from the sale of these notes to enter into call spread transactions. These transactions are intended to offset the potential dilution that could result from investors converting their notes into common stock.
The convertible notes were offered in a private offering to qualified institutional buyers, conducted under Rule 144A of the Securities Act of 1933.
The notes carry a coupon rate of 4.75% and mature in 2027.