Insulet prices $450 million in senior notes due 2033

ACTON, Mass. - Insulet Corporation (NASDAQ: PODD), a medical device company with an $18.32 billion market capitalization known for its Omnipod brand of tubeless insulin pump technology, has announced the pricing of a private placement of $450 million senior unsecured notes with a 6.50% annual interest rate, maturing on April 1, 2033. The transaction is expected to close on Monday, subject to customary conditions.

The company anticipates net proceeds of approximately $444.4 million, after discounts and before offering expenses. The funds are intended for various corporate purposes, including the potential repayment or repurchase of Insulet’s existing 0.375% Convertible Senior Notes due in 2026, and to cover fees, costs, and expenses related to this offering and previous credit agreements. According to InvestingPro data, Insulet maintains a healthy financial position with a current ratio of 3.58 and operates with a moderate debt-to-equity ratio of 1.18.

These senior notes will be available exclusively to qualified institutional buyers under Rule 144A and to non-U.S. persons outside the United States pursuant to Regulation S, not being registered under the Securities Act or state securities laws. Therefore, they cannot be sold within the U.S. to U.S. persons unless exempt from registration requirements.

This press release, which is based on a press release statement, is not an offer to sell or a solicitation to buy any securities, nor will it constitute an offer to repurchase the Convertible Senior Notes. Any offer of these notes will be made solely through a private offering memorandum.

Insulet Corporation, headquartered in Massachusetts, continues to innovate in the medical device sector, focusing on simplifying the lives of people with diabetes through its Omnipod product line. The Omnipod 5 Automated Insulin Delivery System represents the company’s flagship innovation, integrating with continuous glucose monitors for simplified blood sugar management. The company has demonstrated strong performance with revenue growth of 22.07% over the last twelve months and maintains a "GREAT" financial health score according to InvestingPro’s comprehensive analysis, which includes 12 additional key insights available to subscribers.

The press release includes forward-looking statements about the note offering and intended use of proceeds, which are subject to risks, uncertainties, and assumptions. These could cause actual results to differ materially from those projected, as detailed in Insulet’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K. Insulet does not undertake an obligation to publicly update any forward-looking statements. For a deeper understanding of Insulet’s financial position and growth potential, investors can access detailed analysis and Fair Value estimates through InvestingPro’s comprehensive research reports, available for over 1,400 US stocks.

In other recent news, Insulet Corporation reported a 22% increase in full-year 2024 revenue and a 33% increase in EBITDA, reflecting strong performance. The company is planning to issue $450 million in senior unsecured notes due 2033, using the proceeds to manage existing debts, including the repayment of its 0.375% Convertible Senior Notes due 2026. S&P Global Ratings upgraded Insulet’s credit rating from ’BB-’ to ’BB’, citing strong operating performance and expected deleveraging. Additionally, Insulet extended and amended its agreement with NXP USA, a strategic move to secure a stable supply chain for its medical devices.

RBC Capital Markets began coverage of Insulet with an Outperform rating and a price target of $340, highlighting the company’s unique market position and growth potential. Bernstein SocGen Group also raised its price target for Insulet to $335 from $315, maintaining an Outperform rating, following the company’s strong fourth-quarter performance. Insulet’s strategic developments, including the adoption of its Omnipod 5 system, are expected to drive growth in the type 2 diabetes market. These recent developments indicate a positive outlook for Insulet’s operational strategies and financial performance.

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