Medical imaging systems maker Hologic Inc. said Wednesday it priced $1.5 billion in convertible senior notes due 2037.
The notes will pay cash interest semiannually at a rate of 2 percent per year until Dec. 15, 2013, after which their principal will grow 2 percent per year.
Beginning with the interest period starting on Dec. 15, 2013, the notes will pay contingent interest under certain circumstances based on the trading price of the notes, Hologic said.
The notes will be convertible at an initial rate of 12.9555 shares of common stock per $1,000 original principal amount of notes, subject to adjustment, the company said. That equates to about $77.19 per share, a 25 percent premium over Hologic's Tuesday closing price. The sale is expected to close on Monday.
Hologic also granted the underwriters an option to buy up to $225 million in additional notes to cover overallotments.
Hologic said it plans to use proceeds from the offering to repay debt.
Hologic shares fell 8 cents to $61.67 in morning trading.
