SonoSite Repurchases $60 Million of Its Convertible Notes
October 30 2008 - 4:05PM
Business Wire
SonoSite, Inc. (Nasdaq:SONO), the world leader and specialist in
hand-carried ultrasound for point-of-care medicine, today announced
that it has repurchased in the open market an aggregate of $60.3
million of the principal outstanding amount of its 3.75%
convertible notes due 2014 for total consideration of approximately
$47.4 million in cash, excluding accrued interest. Following these
repurchases, convertible notes representing $164.7 million of
principal debt are outstanding. As a result of the repurchases that
have occurred to date, SonoSite expects to report a pre-tax gain of
approximately $11 million, net of deferred issuance costs, in the
fourth quarter. In connection with the issuance of these
convertible notes in July 2007, SonoSite entered into a convertible
note hedge transaction and a warrant transaction with an affiliate
of one of the underwriters. These transactions were intended to
reduce the potential dilution to SonoSite�s shareholders upon any
conversion of the notes. As a result of the recent repurchases, the
associated convertible note hedges and a corresponding number of
warrant positions will be unwound. The payment received from
unwinding the associated convertible note hedges, less the cost of
the warrant transaction, will result in net proceeds to SonoSite of
approximately $400,000. SonoSite currently has in excess of $280
million in cash and investments. SonoSite�s board of directors has
authorized the repurchase of additional convertible notes in the
open market or in privately negotiated transactions as management
deems appropriate. In the event of additional repurchases, the
company would continue to unwind the associated hedges and a
corresponding number of warrant positions. Conference Call
Information SonoSite will hold a conference call today at 1:30 p.m.
PT/4:30 p.m. ET. The call will be broadcast live and can be
accessed via the �Investors� section of SonoSite�s website at
www.sonosite.com. A replay of the audio web cast will be available
beginning October 30, 2008, 4:30 p.m. PT and will be available
until November 13, 2008, midnight PT by dialing (719) 457-0820 or
toll-free (888) 203-1112. The confirmation code 4566842 is required
to access the replay. The call will also be archived on SonoSite�s
website at http://ir.sonosite.com. About SonoSite SonoSite, Inc.
(www.sonosite.com) is the innovator and world leader in
hand-carried ultrasound. Headquartered near Seattle, the company is
represented by ten subsidiaries and a global distribution network
in over 100 countries. SonoSite�s small, lightweight systems are
expanding the use of ultrasound across the clinical spectrum by
cost-effectively bringing high performance ultrasound to the point
of patient care. The company employs over 600 people worldwide.
Forward-looking Information and the Private Litigation Reform Act
of 1995 Certain statements in this press release relating to our
future financial position as a result of any ongoing repurchase of
our outstanding senior convertible debt and related financing
activities are �forward-looking statements� for the purposes of the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. These forward-looking statements are based on the
opinions and estimates of our management at the time the statements
are made and are subject to risks and uncertainties that could
cause actual results to differ materially from those expected or
implied by the forward-looking statements. These statements are not
guaranties of future performance or results and are subject to
known and unknown risks and uncertainties and are based on
potentially inaccurate assumptions. Factors that could affect our
financial position generally and, therefore, impact the timing and
magnitude of any possible future repurchase of notes include, among
other things, our ability to successfully manufacture, market and
sell our ultrasound systems, our ability to accurately forecast
customer demand for our products, our customers� ability to finance
the purchase of our systems, including the effect of reducing
spending by hospitals, our ability to manufacture and ship our
systems in a timely manner to meet customer demand, variability in
quarterly results caused by the timing of large project orders from
governmental or international entities and the seasonality of
hospital purchasing patterns, timely receipts of regulatory
approvals to market and sell our products, regulatory and
reimbursement changes in various national health care markets,
constraints in government and public health spending, the ability
of our distribution partners and other sales channels to market and
sell our products and any changes to such channels, the impact of
patent litigation, our ability to execute our acquisition strategy,
the effect of transactions and activities associated with our
issuance of senior convertible debt in July 2007, including the
ongoing repurchase of a portion of the outstanding debt and the
continued unwinding of a portion of the related derivative
positions in our common stock, on the market price of our common
stock, and as well as other factors contained in the Item 1A. �Risk
Factors� section of our most recent Annual Report on Form 10-K
filed with the Securities and Exchange Commission. We caution
readers not to place undue reliance upon these forward-looking
statements that speak only as to the date of this release. We
undertake no obligation to publicly revise any forward-looking
statements to reflect new information, events or circumstances
after the date of this release or to reflect the occurrence of
unanticipated events.
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