CONMED Keeps Buying Back Stock With $180 Million Drawn On Its Revolver And Convertible Notes Due In June 2027
The surgical-device maker has used $49.9 million of a $150.0 million buyback and says cash flow and its credit line will cover the 2027 note maturity.
CONMED, which makes devices and equipment for surgical procedures, has spent $49.9 million of its $150.0 million buyback authorization through September 30, 2026, even as it carries $180.0 million on its revolving credit line. A 10-Q filed Wednesday also shows the remaining 2.250% convertible notes come due June 15, 2027.
Buyback running alongside the debt
The repurchases through September 30 total 1.2 million shares, and that $49.9 million includes excise tax. The company now expects to buy back about $62 million of stock in 2026. The prior quarter's filing put it as at least $25.0 million annually, with $61.8 million planned for 2026.
Through June 30 the tally had been 1.0 million shares for $43.7 million. The company says it has funded the purchases with operating cash flow and revolver borrowings, and it may suspend or end the program at any time. It has suspended dividend payments since authorizing the program.
In the nine months, the company paid $49.4 million for stock repurchases.
The June 2027 maturity
CONMED issued $800.0 million of the 2.250% notes on June 6, 2022. During the nine months it repurchased $645.2 million of principal for $637.2 million in cash. It funded the purchase partly with a $450.0 million Term A-2 loan and with $180.0 million in net revolver borrowings.
Management says it intends to repay the remaining notes from operating cash flow plus revolver capacity. At September 30, $468.5 million was available on the revolver, with about $1.5 million set aside for letters of credit. Term A-2 borrowings stood at $444.4 million and Term A-1 at $40.0 million. The company said it was in full compliance with its loan covenants.
If it cannot service its debt, the filing lists alternatives including cutting capital spending, selling assets, refinancing or seeking equity capital.
Interest costs climb
The refinancing pushed interest expense to $11.1 million in the third quarter from $7.6 million a year earlier. The weighted average rate on its borrowings rose to 4.86% from 2.80%, which the company attributes to the refinancing completed in the second quarter.
The company also sold $335.6 million in the third quarter, down 0.7%, after exiting its gastroenterology products. Gross margin rose to 56.4% from 49.2%, and net income reached $19.8 million. Orthopedic sales rose 7.7%, while general surgery fell 6.5%. Nine-month operating cash flow was $100.0 million, against $124.4 million a year earlier.
The next hard date is June 15, 2027, when the remaining 2.250% notes mature and the revolver capacity is tested.
Sources
- 10-Q Filing — CONMED (CNMD) — SEC EDGAR
- 10-Q Filing — CONMED (CNMD), Q2 FY2026 filed 2026-07-29 (comparison basis) — SEC EDGAR
- Earnings release (8-K Item 2.02, cnmdearningsrelease9302026.htm) — CONMED, filed 2026-10-28 — SEC EDGAR
- CONMED Corporation to Report Third Quarter 2026 Financial Results on October 28, 2026 – Company Announcement - FT.com — Financial Times
