Akorn to price $100 million five-year convertible notes to yield 3.5%-4%, up 25%-30%

By Rebecca Melvin

New York, May 25 - Akorn Inc. launched a $100 million offering of five-year convertible senior notes early Wednesday that was seen pricing after the market close, according to a syndicate source.

Price talk was for a 3.5% to 4% coupon and a 25% to 30% initial conversion premium.

Deutsche Bank Securities Inc. is the bookrunner for the Rule 144A deal, which has a $20 million over-allotment option, and Citigroup Global Markets Inc. is the co-manager.

The five-year bullets will be convertible into shares of Akorn stock, cash or a combination.

Proceeds will be used for general corporate purposes, including potential future acquisitions and strategic transactions. However, Akorn has no pending agreement or understanding regarding any acquisition or transaction.

Buffalo Grove, Ill.-based Akorn is a pharmaceutical company focused on diagnostics and therapeutics in the areas of ophthalmology, antidotes, anti-infectives, and controlled substances for pain management and anesthesia.

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