HOUSTON, Sept. 3 /PRNewswire-FirstCall/ -- Cyberonics, Inc. today announced that it has repurchased, in privately-negotiated transactions, an aggregate of approximately $27.6 million face value of its 3.0% Convertible Notes due 2012, for aggregate consideration of approximately $25.0 million in cash, excluding accrued interest. As a result of these repurchases, approximately $97.4 million of the Convertible Notes remain outstanding. As of July 25, 2008, Cyberonics had approximately $101.0 million in cash, without giving effect to the $25.0 million used by Cyberonics to repurchase the Convertible Notes.
"This repurchase enables us to improve 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. "Because the repurchase was done at a discount to face value, we will record a one-time gain of approximately $2.6 million on a pre-tax basis during our second quarter ending October 24, 2008."
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/
