Aspect offers $10m in notes

Aspect Medical Systems Inc. said today that it will offer about $110 million in notes to finance its recently announced share repurchase from Boston Scientific Corp.

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 announced late Monday for about $32 million.

Under an agreement, the second buyback of 2 million shares will cost about $31.2 million.

Aspect Medical also has the option of buying another 2 million shares from Boston Scientific, the remainder of the company's stake, over the next six months.

Aspect Medical will also offer the initial purchaser of the notes an option for another $15 million in notes.

The company announced its plan to buy back the 6 million shares owned by Boston Scientific after the companies agreed to end a collaboration to develop medical tests for neurological conditions.

Aspect plans to use the remainder of the proceeds for future buybacks, investments in its neuroscience program, and general corporate purposes.

Shares of Aspect Medical closed Tuesday at $15.60. (AP)