By Kenneth Lim
Boston, March 6 - DexCom Inc. priced $40 million of 20-year convertible senior notes on Tuesday before the market opened at a coupon of 4.75% and an initial conversion premium of 20%.
The notes were offered at par.
There is an over-allotment option for a further $20 million.
Piper Jaffray & Co. was the bookrunner of the Rule 144A offering.
The convertibles are non-callable for the first three years. They may be put in years five, 10 and 15.
The company may also force conversion of the notes at any time subject to a hurdle at 150% of the conversion price.
The notes have takeover protection.
DexCom, a San Diego-based maker of continuous glucose monitoring systems, said it will use the proceeds of the deal to fund general purposes.
| Issuer: | DexCom Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | Piper Jaffray & Co.
|
| Amount: | $40 million
|
| Greenshoe: | $20 million
|
| Maturity: | March 15, 2027
|
| Coupon: | 4.75%
|
| Price: | Par
|
| Yield: | 4.75%
|
| Conversion premium: | 20%
|
| Conversion price: | $7.80
|
| Conversion ratio: | 128.2051
|
| Automatic conversion: | 150% of conversion price
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before March 20, 2010
|
| Puts: | March 15, 2012; March 15, 2017; March 15, 2022
|
| Pricing date: | March 6, before the open
|
| Settlement date: | March 9
|
| Distribution: | Rule 144A
|
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