By Marisa Wong
Los Angeles, Dec. 12 – Ionis Pharmaceuticals, Inc. said it will issue $398 million of 0.125% convertible senior notes due Dec. 15, 2024 in exchange for $340.2 million of existing 1% convertible senior notes due 2021 under privately negotiated exchange agreements with some holders of the outstanding 2021 notes.
The company will also issue $109.5 million of new notes for cash under subscription agreements with new investors, according to a Thursday press release.
The exchange transactions and the subscription transactions are expected to close at the same time on or about Dec. 19.
The new notes will be convertible into cash, shares of Ionis’ common stock or a combination of cash and stock, at the company’s election. The initial conversion rate is 12.0075 shares per $1,000 principal amount of notes, equivalent to an initial conversion price of $83.28 per share.
The new notes are not callable prior to maturity.
Ionis said it will not receive any cash proceeds from the exchange transactions. After closing, $344.8 million of 2021 notes will remain outstanding.
Net cash proceeds from the subscription transactions will be about $99.2 million, according to the release. The company intends to use those proceeds to pay the cost of convertible note hedge transactions and for general corporate purposes.
The pharmaceutical company is based in Carlsbad, Calif.
New notes
| Issuer: | Ionis Pharmaceuticals, Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $507.5 million ($398 million in exchange for 2021 notes and $109.5 million for cash)
|
| Maturity: | Dec. 15, 2024
|
| Coupon: | 0.125%
|
| Conversion price: | $83.28 per share
|
| Call option: | No
|
| Announcement date: | Dec. 12
|
| Settlement date: | Dec. 19
|
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