American Medical Systems Holdings, Inc. (NASDAQ: AMMD) (the “Company”), today announced the results of its exchange offer (the “Exchange Offer”) in which the Company offered $1,000 principal amount of its newly issued 4.00% Convertible Senior Subordinated Notes due 2041 (the “2041 Notes”) in exchange for each $1,000 principal amount of its outstanding 3.25% Convertible Senior Subordinated Notes due 2036 (the “2036 Notes”), for up to $250 million, and no less than $100 million, aggregate principal amount of 2036 Notes.
The Exchange Offer expired on midnight, New York City time, on September 16, 2009. U.S. Bank National Association, the exchange agent in the Exchange Offer, has advised the Company that $289.5 million aggregate principal amount of 2036 Notes were validly tendered and not validly withdrawn prior to the expiration of the Exchange Offer, representing approximately 93% of the aggregate principal amount of the 2036 Notes outstanding upon commencement of the Exchange Offer.
Based on the principal amount of the 2036 Notes validly tendered and not withdrawn, the 2036 Notes will be subject to a proration factor of approximately 86%. After factoring in the proration, $62 million aggregate principal amount of the 2036 Notes will remain outstanding following the consummation of the Exchange Offer and the Company will issue $250 million aggregate principal amount of its new 2041 Notes. The Company expects the settlement of the Exchange Offer to occur on September 21, 2009. In settlement of the Exchange Offer, the Company will pay an aggregate of approximately $1.9 million in cash, representing accrued and unpaid interest payable with respect to the exchanged 2036 Notes.