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Boston Scientific Aims to Raise $1.5 Billion in Two Offerings

Boston Scientific shares fall after the medical-device maker said it would sell $1.5 billion of common and preferred stock.

Boston Scientific  (BSX) - Get Boston Scientific Corporation Report shares were lower after the medical-device maker unveiled offerings of $750 million of common shares and $750 million of Series A mandatory convertible preferred shares.

Shares of the Marlborough, Mass., company at last check were down 6.1% to $34.92.

Boston Scientific said in a statement that it also expected to grant the underwriters separate 30-day options to purchase as much as an additional $112.5 million of common stock and up to an additional $112.5 million of preferred stock.

The company plans to use part of the proceeds to repay in full the remaining $750 million outstanding under its $1.25 billion term loan credit facility maturing in April 2021, and to pay related fees, expenses and premiums. 

The remaining proceeds will be used for general purposes, which may include refinancing or repaying other indebtedness outstanding and funding potential future acquisitions and investments, Boston Scientific said. 

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The closing of each offering is not contingent on the closing of the other offering.

J.P. Morgan and Bank of America Securities are joint book-running managers for the offerings.

On May 15, Boston Scientific priced a public offering of $1.7 billion of senior notes: $500 million in 1.9% notes due 2025 and $1.2 billion in 2.65% notes due 2030.

During a first-quarter conference call last month with analysts, Michael Mahoney, the company's chairman, president and CEO, said that "we are currently planning for the most significant negative impact of Covid-19 in Q2."

"And within Q2, we expect April to be the toughest month with global revenue for the month of April down approximately 45% to 50%," Mahoney said, according to a transcript of the call.

Boston Scientific shares were down 18% in 2020 through Wednesday's market close.