Insulet announces private placement of $700mm in notes

Insulet Corp. (developer of the Omnipod insulin management system) announced an upsized private placement of $700mm (net $684.3mm) aggregate principal amount of convertible senior notes due 2026. The notes bear interest at a rate of 0.375% and can be converted in cash, stock, or a combination. The conversion rate will initially be 4.4105 shares of common stock per $1k principal amount of notes, or $226.73 per Insulin share (its shares are currently averaging $154.65). The company is also granting the initial purchasers an option to purchase another $100mm notes. Insult announced it is entering into capped call transactions and will use some of the proceeds to fund those transactions. Additional funds will be used to repurchase $225mm aggregate principal amount of the outstanding 1.25% convertible senior notes due 2021.