By Rebecca Melvin
New York, June 6 – Illumina Inc. released details on the pricing of its upsized $1 billion of convertible senior notes in two tranches. The deal came to market late Thursday and included an upsized $550 million of 0% five-year notes and $450 million of seven-year tranche priced to yield 0.5%, according to a syndicate source. Both issues have an initial conversion premium of 55%.
The deal was initially talked at $900 million in two equal tranches.
Pricing came at the rich end of talk, which was for a 0% to 0.5% coupon for the five-year notes and 0.5% to 1% for the seven-year notes with a 50% to 55% premium for both.
The five-year notes have an over-allotment option for $82.5 million of additional notes and the seven-year notes have an over-allotment for $67.5 million of additional notes.
The notes are non-callable with no puts and standard takeover and dividend protection features.
Goldman Sachs & Co. and BofA Merrill Lynch were joint bookrunners for the Rule 144A deal.
Proceeds will be used to repurchase or repay a portion of Illumina’s 0.25% convertibles due 2016. Remaining proceeds will be for general corporate proceeds.
Illumina is a San Diego-based developer of genetic research tools.
| Issuer: | Illumina Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $1 billion, upsized from $900 million
|
| Greenshoe: | $150 million, upsized from $135 million
|
| Bookrunners: | Goldman Sachs & Co. and BofA Merrill Lynch
|
| Conversion premium: | 55%
|
| Conversion price: | $254.34
|
| Conversion rate: | 3.9318
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Pricing date: | June 5
|
| Stock symbol: | Nasdaq: ILMN
|
| Stock reference price: | $164.09 as of close June 5
|
| Distribution: | Rule 144A
|
| Market capitalization: | $21.07 billion
|
|
|
| Five-year notes
|
| Amount: | $550 million, upsized from $450 million
|
| Greenshoe: | $82.5 million, upsized from $67.5 miillion
|
| Maturity: | June 15, 2019
|
| Coupon: | 0%
|
| Price: | Par
|
| Yield: | 0%
|
| Price talk: | 0%-0.5%, up 50% to 55%
|
|
|
| Seven-year notes
|
| Amount: | $450 million
|
| Greenshoe: | $67.5 million
|
| Maturity: | June 15, 2021
|
| Coupon: | 0.5%
|
| Price: | Par
|
| Yield: | 0.5%
|
| Price talk: | 0.5% to 1%
|
|
|
© 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.
