By Rebecca Melvin
New York, Dec. 11 – IGI Laboratories Inc. priced $125 million of five-year convertible senior notes after the market close on Wednesday at par to yield 3.75% with an initial conversion premium of 27%, according to a news release.
Pricing of the Rule 144A deal came at the cheap end of 3.25% to 3.75% coupon talk and at the midpoint of the 25% to 30% talked premium.
There is a greenshoe for $18.75 million for the deal, which was 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 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.
Buena, N.J.-based IGI is a specialty generic pharmaceutical company.
| Issuer: | IGI Laboratories Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $125 million
|
| Greenshoe: | $18.75 million
|
| Maturity: | Dec. 15, 2019
|
| Bookrunners: | Deutsche Bank Securities Inc., J.P. Morgan Securities LLC
|
| Coupon: | 3.75%
|
| Price: | Par
|
| Yield: | 3.75%
|
| Conversion premium: | 27%
|
| Conversion price: | $11.29 per share
|
| Conversion ratio: | 88.5716 shares
|
| Calls: | Non-callable until Dec. 19, 2017, then provisionally callable at 150% price hurdle
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Pricing date: | Dec. 10
|
| Settlement date: | Dec. 16
|
| Price talk: | 3.25%-3.75%, up 25%-30%
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: IG
|
| Stock price: | $8.89 at close Dec. 10
|
| Market capitalization: | $469.3 million
|
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