Convatec raises $500 million amid U.S. regulatory threat

Medical products company Convatec Group PLC said Thursday it has priced an offering of $500 million in senior notes, a form of debt.

The notes, set to mature in 2035, will be issued by its subsidiary 180 Medical, Inc. and will bear an annual interest rate of 5.300%, according to the company.

Convatec said it intends to use the proceeds to refinance existing debt, including prepaying an outstanding term loan and a portion of a revolving credit facility.

The issuance is expected to be completed on Oct. 8, subject to customary closing conditions.

The debt offering comes as the London-listed company navigates a potential regulatory headwind in the U.S. market.

Convatec recently warned that a draft payment proposal from the U.S. Centers for Medicare & Medicaid Services could hurt its revenue in 2026.

If implemented, the company estimated a potential negative impact of 1% to 2% of its total group revenue for that year.

The proposal affects reimbursement rates for InnovaMatrix, a key wound-care product that represented about 3% of group revenue in the first four months of 2025.

Convatec has said that while it supports the agency's goal of removing excess costs, it believes the proposed rate is too low.