Insulet Corporation (NASDAQ: PODD) has announced its proposed financing transactions, with plans to offer $450 million aggregate principal amount of senior unsecured notes due 2033 in a private placement. The company intends to utilize the net proceeds from the notes offering, combined with cash on hand, and potentially cash from partially terminating the existing capped call transactions related to the company's existing 0.375% convertible senior notes due 2026, for various purposes including financing the redemption, repurchase, repayment, satisfaction, or other payment of all or a portion of the convertible senior notes.
In addition, Insulet also intends to amend its existing credit agreement to extend the maturity of the company's revolving credit facility from 2028 to 2030 and increase the amount of revolving credit commitments by up to $200 million, resulting in aggregate commitments of up to $500 million. The terms of the commitments and loans under the amended revolving credit facility are expected to be substantially similar to those relating to the commitments and loans under the existing revolving credit facility, except with respect to the aggregate amount of commitments thereunder, the maturity date thereof, and certain other terms.
The notes will be offered and sold only to qualified institutional buyers pursuant to rule 144A under the Securities Act of 1933, as amended, and only to non-U.S. persons outside the United States pursuant to Regulation S. It's important to note that the notes have not been registered under the Securities Act or any applicable state securities laws.
Insulet Corporation, headquartered in Massachusetts, is known for its innovative medical device platform, the Omnipod product, which provides a unique alternative to traditional insulin delivery methods. The company's flagship innovation, the Omnipod 5 automated insulin delivery system, integrates with a continuous glucose monitor to manage blood sugar with no multiple daily injections and zero fingersticks, and can be controlled by a compatible personal smartphone or the Omnipod controller. Additionally, Insulet tailors its technology platform for the delivery of non-insulin subcutaneous drugs across other therapeutic areas. Today the company's shares have moved -1.3% to a price of $258.19. Check out the company's full 8-K submission here.
