Device/Diagnostics Quarterly Deal Statistics, Q1 2016

During the first quarter of 2016, device companies raised an aggregate $1.8 billion in financing, a 50% increase over last quarter's $1.2 billion. Debt was the top financing vehicle, accounting for $1 billion from six deals, or 56% of the total Q1 device financing total. (See Exhibit 1.) This is the first time debt has led since Q2 2011 when eight transactions together totaling $767 million made up 45% of the quarter's money raised.

Two large debt raises from qualified institutional investors made up the vast majority (91%) of the aggregate within the category and contributed to more than half the entire quarter's total. NuVasive Inc. brought in $536 million through the private sale of 2.25% convertible senior notes due 2021 [See Deal]. (Not since cardiovascular-focused Volcano Corp.'s (now a part of Royal Philips Electronics NV) $445 million sale of convertible senior notes in December 2012 [See Deal] have we seen such a large debt raise by a device firm. Volcano went on that same month to buy Crux Biomedical for up to $42 million [See Deal]