PLEASANTON, Calif., Sept. 29 /PRNewswire-FirstCall/ -- Thoratec Corporation , a world leader in products to treat cardiovascular disease, today announced that commencing October 1, 2008, the market price conversion condition for the Company’s senior subordinated convertible notes due 2034 has been satisfied. The conversion condition was met when the Company’s common stock traded above the conversion trigger price of $23.66 for more than 20 of the last 30 trading days in the third calendar quarter 2008.
Holders of the senior subordinated convertible notes may convert their notes through the final maturity date of the notes into shares of our common stock at a conversion rate of 29.4652 shares per $1,000 principal amount of senior subordinated convertible notes, subject to adjustments as provided in the indenture. If holders elect conversion, Thoratec may, at its option, deliver shares of common stock, pay a holder in cash, or deliver a combination of shares and cash, as determined pursuant to the terms of the notes.
The principal amount of the convertible notes at maturity is $247.4 million offset by the original issue discount of $103.7 million.
Thoratec is a world leader in therapies to address advanced stage heart failure. The Company’s product lines include the Thoratec(R) VAD (Ventricular Assist Device) and HeartMate(R) LVAS with more than 11,000 devices implanted in patients suffering from heart failure. Additionally, its International Technidyne Corporation (ITC) division supplies blood testing and skin incision products. Thoratec is headquartered in Pleasanton, California. For more information, visit the Company’s web sites at http://www.thoratec.com or http://www.itcmed.com.
Many of the preceding paragraphs, particularly but not exclusively those addressing the likelihood of conversion of the senior subordinated convertible notes, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements can be identified by the words, “expects,” “projects,” “hopes,” “believes,” “could,” “will,” and other similar words. Actual results, events or performance could differ materially from these forward-looking statements based on variety of factors, many of which are beyond Thoratec’s control. Therefore, readers are cautioned not to put undue reliance on these statements. Investors are cautioned that all such statements involve risks and uncertainties, including risks related to our subordinated convertible notes, their repayment and potential related dilution from conversion, the development of new markets including Destination Therapy, the growth of existing markets for our products, customer and physician acceptance of Thoratec products, changes in the mix of existing markets for our products, customer and physician acceptance of Thoratec products, the results of enrollment in and timing of clinical trials, including for the HeartMate II, the ability to improve financial performance, regulatory approval processes, the effects of healthcare reimbursement and coverage policies, the effects of price competition from any Thoratec competitors and the effects of any merger and acquisition related activities. Forward-looking statements contained in this press release should be considered in light of these factors and those factors discussed from time to time in Thoratec’s public reports filed with the Securities and Exchange Commission, such as those discussed under the heading, “Risk Factors,” in Thoratec’s most recent annual report on Form 10-K, and as may be updated in subsequent SEC filings. These forward-looking statements speak only as of the date hereof. Thoratec undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events.
CONTACT: David Smith, Executive Vice President, Chief Financial Officer of
Thoratec Corporation, +1-925-847-8600; or Neal Rosen of Kalt Rosen
Group|Ruder Finn West, +1-415-692-3058, for Thoratec Corporation
Web site: http://www.thoratec.com/
http://www.itcmed.com/
