Tuesday, June 10, 2008

Insulet targets $65M from notes sale

By Mass High Tech Staff

   
Medical device maker Insulet Corp. says it is looking to raise $65 million through a notes offering to pay off a loan.

The Bedford-based company will sell convertible senior notes due 2013 to qualified institutional buyers, who will also receive an option to buy up to an additional $10 million worth of notes to cover any over-allotments, officials said.

In addition to the loan payoff, Insulet (Nasdaq: PODD) will use the net proceeds for general corporate purposes.

Insulet makes and markets the OmniPod system, which is an insulin-injecting device worn over the skin. The company last week announced it had won its first agreement to develop its technology outside of the field of diabetes care. Swiss drug company Ferring Pharmaceuticals said it will use the OmniPod system to deliver an unspecified drug for women’s health. Ferring primarily markets drugs used in fertility treatments.

With 247 workers, Insulet reported a 2007 net loss of $53.5 million on revenue of $13.4 million. The company completed an $115.5 million initial public offering in May 2007.