Jazz Pharmaceuticals greenshoe lifts exchangeable sale to $575 million

By Tali Rackner

Norfolk, Va., Aug. 13 – Underwriters for Jazz Pharmaceuticals plc’s 1.875% exchangeable senior notes exercised their over-allotment option in full, adding an additional $75 million, according to an 8-K filing with the Securities and Exchange Commission.

The company priced $500 million of the notes on Friday.

As previously reported, the joint lead managers were Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and BofA Merrill Lynch.

The initial exchange price is $199.77 per share – a 47.5% premium over the Aug. 7 closing share price of $135.44. The notes can be exchanged for cash, equity or a combination of cash and equity.

Prior to Feb. 15, 2021, the notes can only be exchanged under certain circumstances.

Beginning Aug. 20, 2018, the company can redeem the debt if the last reported stock price has been at least 130% of the exchange price for 30 consecutive days.

Additionally, holders of the paper can require a repurchase, in cash, in the event of a fundamental change.

Proceeds will be used to pay down a revolving credit facility and for general corporate purposes, including potential business development.

Jazz is a Dublin-based pharmaceutical company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.