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Halozyme greenshoe lifts 1.25% five-year convertibles to $460 million
By Wendy Van Sickle
Columbus, Ohio, Nov. 18 – Underwriters for Halozyme Therapeutics Inc.’s 1.25% of convertible notes due Dec. 1, 2024 fully exercised their $60 million greenshoe, lifting the total deal size to $460 million, according to an 8-K filed Monday with the Securities and Exchange Commission.
The company priced $400 million of the convertibles with an initial conversion premium of 35% on Wednesday, as previously reported.
Pricing of the notes came at the midpoint of talk for a 1% to 1.5% coupon and at the low end of 35% to 40% premium talk.
The Rule 144A deal was sold via joint bookrunners BofA Securities Inc. and Evercore Group LLC.
The notes are non-callable for three years and then provisionally callable at a price trigger of 130%. There are no puts. They have contingent conversion at a trigger of 130%.
The net-share settled notes have takeover protection via a make-whole adjustment premium delivered upon conversion as incremental shares; and there is full dividend protection via conversion ratio adjustment.
Up to $200 million of the proceeds from the notes were expected to be used to repurchase shares of the company’s common stock concurrently with, or shortly after, the pricing of the notes. Remaining proceeds are earmarked for general corporate purposes, including share repurchases subsequent to the offering and working capital, and about $26.1 million will be used for retiring debt under the company’s loan agreement with Oxford Finance and Silicon Valley Bank.
San Diego-based Halozyme is a biotechnology company developing products for diabetes, cancer, dermatology and drug delivery markets.
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