Medartis Announces CHF 115 Million Convertible Bond Offering

On April 3, 2024, Medartis Holding AG, a key player in orthopaedic surgery solutions, revealed the launch of a convertible bond offering, aiming to raise approximately CHF 115 million by 2031. This strategic financial maneuver is set to finance general company activities with an eye towards acquisitions in its core domain.

The offering involves senior unsecured guaranteed convertible bonds, managed by Medartis International Finance SAS, a subsidiary fully owned by Medartis. These bonds, convertible into new or existing shares, come without advanced subscription rights for current shareholders, indicating a strategic move to engage new investments while sustaining operational flexibility.

With a denomination of CHF 200,000 each, these bonds are anticipated to attract a coupon rate between 2.75% and 3.25%, payable semi-annually. Redemption is guaranteed at principal amount on maturity in 2031, unless earlier conversion or purchase occurs. Signifying confidence, Medartis reserves the right to redeem these bonds post-May 2029 under specific conditions.

The private placement targets institutions, eschewing public offering in Switzerland or the US, reflecting stringent adherence to local and international regulations. This event underscores Medartis’s proactive approach to securing funds for future growth, concentrating on acquisitions to consolidate its market stance in specialized orthopaedic solutions.

With BofA Securities Europe SA and Zürcher Kantonalbank orchestrating the bookbuilding process, the offering aligns with Medartis's forward-looking financial strategy, maneuvers aimed at strengthening global operations through strategic investments.