Alnylam talks $900 million five-year convertible notes to yield 1.25%-1.75%, up 30%-35%

By Abigail W. Adams

Portland, Me., Sept. 12 – Alnylam Pharmaceuticals Inc. plans to price $900 million of five-year convertible notes after the market close on Monday with price talk for a coupon of 1.25% to 1.75% and an initial conversion premium of 30% to 35%, according to a market source.

J.P. Morgan Securities LLC is the bookrunner for the Rule 144A offering, which carries a greenshoe of $135 million.

The notes are non-callable until Sept. 20, 2025 and then subject to a 130% hurdle.

In connection with the offering, the company will enter into capped call transactions.

Proceeds will be used to cover the cost of the call spread, approximately $762 million will be used to repay borrowings and terminate its current credit agreement with remaining proceeds to be used for general corporate purposes.

Alnylam is a Cambridge, Mass.-based biopharmaceutical company focused on RNA interference therapeutics.

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