iRhythm
(Nasdaq: IRTC)
announced today that it closed an offering of senior notes worth gross proceeds of $661.25 million.
The San Francisco-based cardiac monitor maker said earlier this week that it intends to offer $450 million in convertible senior notes. Approximately 17 hours later, it upsized that offering to a base of $575 million.
San Francisco–based iRhythm sold the notes — due 2029 — to qualified institutional buyers. Proceeds include the full exercise of an option to buy up to an additional $86.25 million in notes. The notes will be senior, unsecured obligations of iRhythm, with interest payable semi-annually in arrears. They notes mature on Sept. 1, 2029, unless earlier converted, repurchased or redeemed.
Holders can require iRhythm to repurchase for cash all or a portion of the notes at 100% of their principal amount, plus interest.
The company estimates net proceeds of approximately $643 million, according to a news release. That comes after deducting the initial purchaser’s discount and estimated offering expenses payable by iRhythm.
iRhythm used approximately $72.4 million in proceeds to pay the cost of capped call transactions. Additionally, it used approximately $80.2 million to repay outstanding indebtedness. Finally, it used approximately $25 million to repurchase 229,252 shares of its common stock in connection with the offering.
The company said it plans to use the remainder of the proceeds for general corporate purposes. That may include sales and marketing activities, medical affairs and educational efforts, research and development and clinical studies, and working capital, capital expenditures, and investments in and acquisitions of other companies, products or technologies in the future. However, iRhythm has no commitments or specific plans with respect to any such investments in and acquisitions of other companies, products or technologies at this time.