HOUSTON, Oct. 6 /PRNewswire-FirstCall/ -- Cyberonics, Inc. today announced that it has repurchased, in privately-negotiated transactions, an aggregate of $12.7 million face value of its 3.0% Convertible Notes due 2012, for aggregate consideration of approximately $10.0 million in cash, excluding accrued interest. As a result of these repurchases, approximately $84.7 million of the Convertible Notes remain outstanding. As of July 25, 2008, Cyberonics had approximately $101.0 million in cash. Since that date, Cyberonics has used a total of $35.0 million to repurchase the Convertible Notes when combining this most recent repurchase sum with the $25.0 million repurchase announced on September 3, 2008.
"This repurchase continues the improvement to our balance sheet by reducing our debt position while maintaining an adequate level of cash," said Dan Moore, President and Chief Executive Officer of Cyberonics. "Based on the two Convertible Note repurchases completed this quarter, we will record a one-time gain of approximately $5.4 million on a pre-tax basis during our second quarter ending October 24, 2008, partially offset by the acceleration of approximately $0.8 million in deferred origination costs."
About VNS Therapy(TM) and Cyberonics
Cyberonics, Inc. is a medical technology company with core expertise in neuromodulation. The company developed and markets the Vagus Nerve Stimulation (VNS) Therapy(TM) System, which is FDA-approved for the treatments of epilepsy and depression. The VNS Therapy System uses a surgically implanted medical device that delivers electrical pulsed signals to the vagus nerve. Cyberonics markets the VNS Therapy System in selected markets worldwide.
Additional information on Cyberonics, Inc. and VNS Therapy(TM) is available at http://www.cyberonics.com and http://www.vnstherapy.com.
CONTACT: Greg Browne, CFO of Cyberonics, Inc., +1-281-228-7262, Fax,
+1-281-218-9332, ir@cyberonics.com
Web site: http://www.cyberonics.com/
http://www.vnstherapy.com/
