Boston Scientific Selling Investments to Pay Debt
Boston Scientific is selling its investments in several companies and venture funds as part of its effort to pay down debt.
The firm is selling the majority of its private investment portfolio for more than $100 million in pre-tax proceeds. Most of the payment will be in cash with a portion in a note payable over several years, the company said.
The company expects a net pre-tax loss of approximately $60 million on the transaction, based on a previous valuation of the investments.
Boston Scientific also is selling investments in venture funds and other companies for pre-tax proceeds of more than $40 million. The company is expecting a net pre-tax loss of approximately $10 million on the transaction, primarily in the second quarter of 2008.
These sales are part of Boston Scientific’s previously announced plans to divest nonstrategic assets, according to Chief Financial Officer Sam Leno.
“The net after-tax cash proceeds will be used principally to pay down debt,” and the expected gains and losses will not affect adjusted earnings per share, Leno said.