Cardiovascular Systems files plans to sell 2.1M shares in a public offering

Cardiovascular Systems ($CSII) hopes to raise at least $60 million in a public offering to boost the commercial rollout of its coronary artery device-treatment systems. The cash infusion may also advance international expansion and new clinical trials, according to the Minnesota device company's recent regulatory filing.

Plans call for selling 2.1 million shares in an underwritten public offering, and underwriters will also have a 30-day option to buy 315,000 more shares of common stock. Cardiovascular Systems said it expects to raise $60.8 million, assuming a public offering price of $30.88 per share--the closing price on Nov. 15, 2013. That number could climb to as much as $70 million if the underwriters exercise their full option to buy additional shares, the company said in its regulatory filing.

The offering, once it takes place, may end up bringing in less. Cardiovascular Systems closed at $29.76 on Nov. 18, down 3.63%.

In October, Cardiovascular Systems won FDA approval to sell its Diamondback 360 device to treat patients with calcified coronary arteries. It is an orbital atherectomy system that has had U.S. regulatory clearance since 2007 to treat calcified plaque in arterial vessels in the leg and heart. The company also sells catheter systems and products to treat peripheral artery disease.

According to the filing, money raised will help "optimize" commercialization for both product lines, as well as help the company grow, pursue more clinical trials and expand internationally.

With expanded approval of the Diamondback 360, Cardiovascular Systems hopes to grab a major piece of a $1.5 billion market.

Bank of America/Merrill Lynch is the sole book-running manager for the offering, and Leerink Swann is joint-lead manager. William Blair, JMP Securities, Dougherty & Company, Feltl & Company and Wunderlich Securities are co-managers.

- read the company's release
- here's its proposed prospectus

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