By Rebecca Melvin
New York, Sept. 4 - Algeta ASA priced $120 million of five-year convertible bonds at par on Wednesday to yield 3.375% with an initial conversion premium of 32.5% over the volume-weighted average price of shares on the Oslo Stock Exchange between launch and pricing, according to a news release.
Pricing of the Regulation S deal came at the rich end of talk, which was for a 3.375% to 3.875% coupon and 27.5% to 32.5% premium.
The initial conversion price is $52.4989 based on the VWAP of the Oslo exchange-traded shares of NOK 240.4252, and an exchange rate of USD:NOK 6.0680.
The bonds are non-callable until Oct. 11, 2016 and then are provisionally callable if shares increase to 130% of the conversion price.
ABG Sundal Collier Norge ASA and Goldman Sachs International are the joint bookrunners.
Proceeds are earmarked for general corporate purposes and for working capital, including development and potential commercialization of the company's product candidates. A portion of the proceeds may also be used to invest in products, technologies and businesses complementary to its portfolio.
Settlement of the bonds is expected to take place on Sept. 12. The bonds will be unlisted.
Oslo-based Algeta is a private therapeutics company dedicated to the development of novel anticancer therapeutics based on alpha particle emitting radionuclides.
| Issuer: | Algeta ASA
|
| Issue: | Convertible bonds
|
| Amount: | $120 million
|
| Maturity: | Sept. 12, 2018
|
| Bookrunners: | ABG Sundal Collier Norge ASA, Goldman Sachs International
|
| Co-manager: | DNB Markets
|
| Coupon: | 3.375%
|
| Price: | Par
|
| Yield: | 3.375%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $52.4989
|
| Price talk: | 3.375%-3.875%, 27.5%-32.5%
|
| Call: | Non-callable until Oct. 11, 2016, then provisionally callable at 130% price hurdle
|
| Pricing date: | Sept. 4
|
| Settlement date: | Sept. 12
|
| Distribution: | Regulation S
|
| Stock symbol: | Oslo: ALGETA
|
| Stock reference price: | $39.6218
|
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