Medartis Holding AG, a specialized orthopaedic company for head and extremity surgery, announced the successful placement of senior unsecured guaranteed convertible bonds due 2031 for an amount of CHF 115.8 million, convertible into newly issued and/or existing registered shares of the company.
The bonds are issued via Medartis International Finance SAS, a directly wholly-owned subsidiary of the company, and the payment obligations under the bonds will be unconditionally and irrevocably guaranteed by the company. Advanced subscription rights for existing shareholders were excluded in the offering, according to a news release from Medartis.
The settlement of the bonds is expected to take place on April 11, 2024 (the settlement date). An application will be made for the bonds to be admitted to trading on the open market of the Frankfurt Stock Exchange (“Freiverkehr”) and such admission to trading is expected no later than three months after the settlement date. The net proceeds from the bonds issue will be used for general funding purposes including acquisitions in Medartis’ core business.
Medartis Chief Financial Officer Dirk Kirsten commented, “Following the strong sales growth and improved profitability in 2023, we have taken the opportunity to expand our investor base in connection with this transaction, which gives us the strategic flexibility to further accelerate our business with innovative products."
The bonds will be issued with a denomination of CHF 200,000 per bond at 100% of their principal amount, and will bear a coupon of 3% per annum, payable semi-annually in arrear. The initial conversion price of the bonds has been set at CHF 100.725, representing a premium of 27.5% over the price per share in the Concurrent Delta Placement. The initial conversion price is subject to customary adjustments as set out in the terms and conditions of the bonds. Unless previously converted, redeemed or, repurchased and cancelled, the bonds will be redeemed at 100% of their principal amount on April 11, 2031.
The joint bookrunners have conducted a simultaneous placement of existing shares of the company in order to facilitate hedging the market risk for certain subscribers of the bonds (the concurrent delta placement). Medartis will not receive any proceeds from the placement of these shares.
About Medartis
Founded in 1997 and headquartered in Basel, Switzerland, Medartis is one of the world's leading manufacturers and suppliers of medical devices for the surgical fixation of bone fractures in the upper and lower extremities and the craniomaxillofacial region. Medartis employs more than 860 people in 13 locations and its products are sold in more than 50 countries worldwide.
Medartis is committed to providing surgeons and surgical staff with the most innovative titanium implants and instruments, as well as world-class service, according to the news release.
For more information, visit www.medartis.com.