PLEASANTON, Calif., March 31, 2011 /PRNewswire/ -- Thoratec Corporation (Nasdaq: THOR), a world leader in device-based mechanical circulatory support therapies to save, support and restore failing hearts, announced today that it has given notice of its intention to redeem all of the outstanding Senior Subordinated Convertible Notes due 2034 (CUSIP No. 885175AA7) (the "Notes") on May 17, 2011. As of March 30, 2011 there were 243,382 notes outstanding, which can be converted into 7.2 million shares of common stock.
Subject to and in accordance with the terms and conditions set forth in the Indenture governing the Notes dated as of May 24, 2004, holders of Notes have the right to convert their Notes on or before May 16, 2011, at a conversion rate of 29.4652 shares of our common stock per $1,000 principal amount of the Notes surrendered. Notes surrendered for conversion may be settled in a combination of cash and stock, subject to the determination of the company.
"In conjunction with our recently announced $100 million share repurchase program, the redemption of our Convertible Notes demonstrates the strength of our balance sheet, our confidence in the long-term prospects of the company, and our focus on enhancing shareholder value," said David V. Smith, executive vice president and chief financial officer. "We are likely to utilize a meaningful percentage of cash in exchange for the Notes, with exact payment terms to be determined and communicated closer to the redemption date."
U.S. Bank National Association, the Trustee for the Notes, is mailing a Notice of Redemption to all registered holders. Copies of such Notice of Redemption and additional information relating to the procedure for redemption and/or conversion of the Notes may be obtained from U.S. Bank National Association by calling (800) 934-6802.
Thoratec is a world leader in therapies to address advanced-stage heart failure. The company's products include the HeartMate® LVAS and Thoratec® VAD (Ventricular Assist Device) with more than 15,000 devices implanted in patients suffering from heart failure. Thoratec is headquartered in Pleasanton, California. For more information, visit the company's web site at http://www.thoratec.com.
Thoratec, the Thoratec logo, HeartMate and HeartMate II are registered trademarks of Thoratec Corporation.
Many of the preceding paragraphs, particularly but not exclusively those addressing future performance, contain forward-looking statements within the meaning of Sections 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, "believes," "views," "expects," "plans," "projects," "hopes," "could," "will," "likely," and other similar words. Actual results, events or performance could differ materially from these forward-looking statements based on a 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 regulatory approvals, the development of new products and 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 and related gross margin for such product sales, the ability to improve financial performance, the effects of FDA regulatory requirements, our ability to address issues raised by FDA inspections adequately and on a timely basis without a resulting recall of products or interruption of manufacturing or shipment of products, the effects of healthcare reimbursement and coverage policies, the effects of seasonality on Thoratec product sales, the effects of competition and the effects of any merger, acquisition and divestiture related activities. Forward-looking statements contained in this press release should be considered in light 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.
SOURCE Thoratec Corporation
