Nashville, Aug. 19 - Alkermes Inc. sold $100 million of 20-year convertible notes at par to yield 2.5% with a 10% initial conversion premium - at the cheap end of guidance - via lead manager USBancorp Piper Jaffray.
Talk had put the yield at 2.0% to 2.5% with a 10% to 15% initial conversion premium.
Holders will have full dividend protection.
The Cambridge, Mass. pharmaceutical company said it plans to use proceeds from the new issue for research, development and clinical trial activities, manufacturing facilities and equipment, potential acquisitions - although none are currently contemplated - working capital and general corporate purposes.
Terms of the new deal are:
Issuer: Alkermes Inc.
| Issue: | Convertible subordinated notes
|
| Lead managers: | | USBancorp Piper Jaffray
|
| Amount | $100 million
|
| Greenshoe: | $25 million
|
| Maturity: | Sept. 1, 2023
|
| Coupon: | 2.5%
|
| Price: | Par
|
| Yield: | 2.5%
|
| Conversion premium: | 10% over the Aug. 19 closing stock bid of $12.59
|
| Conversion price: | $13.85
|
| Conversion ratio: | 72.2022
|
| Call: | Non-callable for 3 years with 150% hurdle, with make-whole for coupon less interest already paid
|
| Put: | In years 5, 10, 15 and 20 in cash
|
| Price talk: | 2.0-2.5%, up 10-15%
|
| Pricing date: | Aug. 18, after the close
|
| Settlement: | Aug. 25
|
| Distribution: | Rule 144A
|
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