By Stephanie N. Rotondo
Seattle, May 5 – AMAG Pharmaceuticals Inc. priced an upsized $300 million of five-year convertible senior notes at par to yield 3.25% with an initial conversion premium of 37.5% on Friday, according to a market source.
The issue was upsized from $250 million and came at the cheap end of the 2.75% to 3.25% yield talk, as well as at the cheap end of the 37.5% to 42.5% premium talk.
J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the joint bookrunners.
There is a $45 million over-allotment option, increased from $37.5 million.
Prior to March 1, 2022, the notes are contingently convertible. After that date, the notes can be converted at any time.
Conversions will be settled in cash, stock or a combination. The conversion price is $27.36, representing a conversion rate of 36.5464 shares.
The notes are non-callable for life and are putable only upon a fundamental change.
Proceeds will be used, along with cash on hand, to repay and terminate the company’s $320.8 million 2015 term loan facility.
Alongside the convertible debt sale, the company may enter into privately negotiated transactions to purchase $158.9 million of its 2019 notes. Such transactions will be funded with cash on hand.
AMAG is a Waltham, Mass.-based biopharmaceutical company.
| Issuer: | AMAG Pharmaceuticals Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $300 million
|
| Greenshoe: | $45 million
|
| Maturity: | June 1, 2022
|
| Bookrunners: | J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Co-manager: | Leerink Partners LLC
|
| Coupon: | 3.25%
|
| Price: | Par of $1,000
|
| Yield: | 3.25%
|
| Conversion premium: | 37.5%
|
| Conversion price: | $27.36
|
| Conversion rate: | 36.5464 shares
|
| Call options: | None
|
| Contingent conversion: | Yes, prior to March 1, 2022
|
| Pricing date: | May 5
|
| Settlement date: | May 10
|
| Talk: | 2.75% to 3.25% yield, up 37.5% to 42.5%
|
| Stock symbol: | Nasdaq: AMAG
|
| Stock price: | $19.90 as of May 4 close
|
| Market capitalization: | $672.87 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.
