Wednesday, December 3, 2008

Aspect Medical repurchases convertible senior notes

By Mass High Tech Staff

Brain-monitoring device maker Aspect Medical Systems Inc. has agreed to pay about $16 million in cash to buy back 2.5 percent convertible senior notes due in 2014 and valued at $35 million.

In June 2007, Aspect (Nasdaq: ASPM) sold $125 million of its 2.5 percent convertible senior notes; since then, the company has repurchased about $60 million in total value, leaving $65 million in outstanding convertible senior notes.

Michael Falvey, Aspect CFO, said in a press release that the repurchase agreement reduces the company’s debt. The company announced last month that Falvey will resign from the CFO position as of Dec. 31, in order to pursue other opportunities. In the interim, former Aspect CFO J. Neal Armstrong will serve as acting CFO.

The company says its brain-monitoring system, called bispectral index technology, has been used to assess 29 million patients. A primary use of the technology is to monitor brain activity in patients undergoing general anesthesia or deep sedation, according to the firm.

In September, Norwood-based Aspect reported a quarterly gain of $1 million on quarterly revenue of $25 million. The company announced in May its plans to expand its sale force from 40 people to between 55 and 60 over the next three quarters, to increase adoption of its bispectral index technology to monitor patients’ brain activity during anesthesia.