Insulet Prices Public Offering Of $175 Mln Convertible Senior Notes Due 2019

(RTTNews) - Insulet Corp. (PODD) announced that it has priced a public offering of $175 million principal amount of convertible senior notes due 2019. The notes will bear interest at an annual rate of 2.00% and will mature on June 15, 2019, unless earlier converted, purchased or redeemed.

Insulet also granted the underwriter an option to purchase up to an additional $26.25 million principal amount of notes to cover over-allotments, if any.

Insulet said it estimates that the net proceeds from the notes offering will be about $169.3 million after deducting the underwriter's discounts and estimated offering expenses payable by Insulet.

Insulet intends to use about $120 million of the net proceeds from the notes offering to repurchase approximately $86 million principal amount of its outstanding 3.75% Convertible Senior Notes due 2016 pursuant to individually negotiated transactions. The amount paid to repurchase these notes includes approximately $1.6 million of accrued interest.