Amphastar Pharmaceuticals talks $300 million long five-year convertibles at 1.5%-2%, up 30%-35%

By Abigail W. Adams

Portland, Me., Sept. 11 – Amphastar Pharmaceuticals Inc. plans to price $300 million of long five-year convertible notes after the market close on Tuesday with price talk for a coupon of 1.5% to 2% and an initial conversion premium of 30% to 35%, according to a market source.

Jefferies LLC (lead left), BofA Securities Inc., Wells Fargo Securities LLC and J.P. Morgan Securities LLC are bookrunners for the Rule 144A offering, which carries a greenshoe of $45 million.

The notes will be settled in cash up to the principal amount with any excess to be settled in cash, shares or a combination of both.

Approximately $200 million of net proceeds will be used to repay borrowings under its term loan, $50 million will be used to repurchase common stock in privately negotiated transactions with remaining amounts to be used for general corporate purposes.

Amphastar is a Rancho Cucamonga, Calif.-based specialty pharmaceutical company.

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