Insulet Corporation (NASDAQ: PODD) has announced the pricing of $450 million aggregate principal amount of senior unsecured notes due 2033. These notes will bear interest at an annual rate of 6.50% and are expected to mature on April 1, 2033. The company estimates that the net proceeds from this offering will be approximately $444.4 million after deducting discounts and before estimated offering expenses.
Insulet Corporation intends to use the net proceeds from this offering, along with cash on hand and potentially cash from partially terminating the company’s existing capped call transactions, for various purposes. These include financing the redemption, repurchase, repayment, satisfaction, or other payment of all or a portion of the convertible senior notes, as well as paying any fees, costs, and expenses relating to the offering of the notes and the company’s previously announced credit agreement transactions, and for general corporate purposes.
The notes are being offered and sold only to qualified institutional buyers under Rule 144A of the Securities Act of 1933 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 applicable state securities laws.
Insulet Corporation, headquartered in Massachusetts, is dedicated to simplifying life for people with diabetes and other conditions through its omnipod product platform. The omnipod insulin management system provides a unique alternative to traditional insulin delivery methods, offering up to three days of non-stop insulin delivery without the need to see or handle a needle. Additionally, 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. Furthermore, Insulet leverages the unique design of its pod by tailoring its omnipod technology platform for the delivery of non-insulin subcutaneous drugs across other therapeutic areas. Following these announcements, the company's shares moved 2.0%, and are now trading at a price of $265.62. For more information, read the company's full 8-K submission here.
