Illumina greenshoe exercised for $150 million more convertibles

By Marisa Wong

Madison, Wis., June 11 – The initial purchasers of Illumina Inc.’s recent offering of 0% convertible senior notes due 2019 and 0.5% convertible senior notes due 2021 exercised their over-allotment options in full, according to an 8-K filing with the Securities and Exchange Commission.

The over-allotment options were for $82.5 million of additional 0% notes due 2019 and $67.5 million of additional 0.5% notes due 2021.

As reported, Illumina priced $1 billion of convertible senior notes in two tranches on June 5. The deal included an upsized $550 million of 0% five-year notes and $450 million of 0.5% seven-year notes. 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 0% to 0.5% for the five-year notes and 0.5% to 1% for the seven-year notes and a 50% to 55% premium for both tranches.

The notes are non-callable with no puts and have 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.

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