A Medical Device Daily

Aspect Medical Systems (Norwood, Massachusetts) said it will offer about $110 million in notes to finance its recently reported share repurchase from Boston Scientific (Natick, Massachusetts) (Medical Device Daily, June 13, 2007).

Proceeds from the sale of convertible senior notes due 2014 will finance the buyback of about 2 million shares from Boston Scientific. The move follows the buyback of 2 million shares from the company reported late Monday for about $32 million. The second buyback of 2 million shares will cost about $31.2 million.

Aspect also expects to grant the initial purchaser of the notes an option to buy an additional $15 million principal amount of notes.

The company reported its plans to buy back the 6 million shares owned by Boston Scientific after the companies agreed to end a development collaboration for brain-monitoring products.

Aspect said it will use the rest of the proceeds for future buybacks, investments in its neuroscience program, and general corporate purposes.

In other financing activity: Community Health Systems (Franklin, Tennessee), reported that its wholly owned subsidiary, CHS/Community Health Systems , intends to offer $3.365 billion aggregate principal amount of senior notes. The notes will be issued in three series: floating rate senior notes due 2015, senior notes due 2015 and senior notes due 2017. The notes will be senior obligations of the Issuer and will be guaranteed on a senior basis by the company and by certain of the Issuer’s and the company’s domestic subsidiaries, Community Health Systems said.

The company said it would use the net proceeds of the offering, together with other funds, to complete the $6.8 billion acquisition of Triad Hospitals whose shareholders just voted to approve the merger (see Deals p. 2). The acquisition is expected to close in 3Q07, subject to certain closing conditions that include regulatory and other approvals.

Through its subsidiaries, Community Health Systems owns, leases or operates 80 hospitals in 23 states.

The company also said, in connection with its cash tender offer and consent solicitation for any and all of its outstanding $300 million aggregate principal amount of 6-1/2% senior subordinated notes due 2012, that it extended the price determination date to 10 a.m. EST June 25 and the expiration date from midnight EST on June 27 to midnight EDT on July 10.

As of 5 p.m., E.S.T. Tuesday, the company said it had received tenders and consents from holders of about $229 million in aggregate principal amount of the notes, representing roughly 76.2% of the total outstanding principal amount of the notes.