Amyris plans to sell $75 million five-year convertible notes to yield 6%-6.5%, up 20%-25%

By Rebecca Melvin

New York, May 22 - Amyris Inc. launched an offering of $75 million of five-year convertible senior notes that was expected to price after the market close Thursday at a coupon of between 6% to 6.5% and an initial conversion premium of 20% to 25%, according to a syndicate source.

The Rule 144A offering has a $15 million greenshoe.

The notes, which mature May 15, 2019, will be physically settled. They also have a provision under which the notes may be converted after May 15, 2015 if shares remain above the conversion price for 20 out of 30 days, in which case holders will receive a cash payment equal to the present value of up to three years of remaining coupons.

Proceeds are earmarked for general corporate purposes, including potential collaboration opportunities and other strategic transactions or acquisitions. In addition, Total Energies Nouvelle Activities USA may exchange up to about $9.7 million of outstanding convertible promissory notes currently held by Total for new securities issued by Amyris.

Morgan Stanley & Co. LLC is bookrunning manager for the offering.

Emeryville, Calif.-based Amyris is a maker of renewable chemicals and fuels.

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