IGI Laboratories to price $125 million five-year convertibles to yield 3.25%-3.75%, up 25%-30%

By Rebecca Melvin

New York, Dec. 9 – IGI Laboratories Inc. plans to price $125 million of five-year convertible senior notes after the market close on Wednesday to yield 3.25% to 3.75% with an initial conversion premium of 25% to 30%, according to market sources.

The Rule 144A deal has a greenshoe for $18.75 million and was being sold via joint bookrunners Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC.

The notes will be non-callable until Dec. 19. 2017 and then are provisionally callable if shares exceed 150% of the conversion price.

The securities have takeover and dividend protection.

Proceeds are earmarked for general corporate purposes, including for capital expenditures and potential future acquisitions and strategic transactions.

Hillside, N.J.-based IGI is a pharmaceutical company.

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