By Rebecca Melvin
New York, June 20 - Affymetrix Inc. priced $105 million of seven-year senior convertible notes at par late Tuesday to yield 4% with an initial conversion premium of 25%, according to a syndicate source.
The registered offering has a $10 million greenshoe.
Pricing came at the cheap end of revised talk for the coupon, which was 3.75% to 4%, and at the revised price point for the premium. Originally, price talk was for a lower coupon of 3.25% to 3.75% and a higher premium of 27.5% to 32.5%.
Joint bookrunners were Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC, with Bank of America Merrill Lynch Inc. and Robert W. Baird & Co. Inc. acting as the co-managers.
The notes will be non-callable until July 1, 2017 and will be provisionally callable thereafter at a price hurdle of 130%.
Proceeds will be used to fund a portion of the purchase price for the company's pending acquisition of eBioscience Holding Co. Inc. If the acquisition is not completed, the company can call the notes by Nov. 12, 2012.
Affymetrix is a Santa Clara, Calif.-based provider of technology used by pharmaceutical, diagnostic and biotechnology companies, as well as by academic, government and nonprofit research organizations.
eBioscience is a San Diego, Calif.-based immunology and oncology research and diagnostics company.
| Issuer: | Affymetrix Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $105 million
|
| Greenshoe: | $10 million
|
| Maturity: | July 1, 2019
|
| Bookrunners: | Citigroup Global Markets Inc., Morgan Stanley & Co. LLC
|
| Co-managers: | Bank of America Merrill Lynch Inc., Robert W. Baird & Co. Inc.
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Conversion premium: | 25%
|
| Conversion price: | $5.88
|
| Conversion ratio: | 170.0319
|
| Call option: | Non-callable until July 1, 2017 and then provisionally callable subject to 130% price hurdle
|
| Puts: | No puts
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Price talk: | 3.75%-4%, up 25%, revised from 3.25%-3.75%, up 27.5%-32.5%
|
| Pricing date: | June 19
|
| Settlement date: | June 25
|
| Distribution: | Registered
|
| Stock symbol: | Nasdaq: AFFX
|
| Stock price: | $4.705 at Nasdaq close June 19
|
| Market capitalization: | $362.1 million
|
© 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.
