By Wendy Van Sickle
Columbus, Ohio, Aug. 16 – Illumina, Inc. priced $650 million of five-year 0% convertible notes after the market close on Thursday with an initial conversion premium of 40%, according to a press release.
The coupon matched talk, and the initial conversion premium was in the middle of talk of 37.5% to 42.5%.
BofA Merrill Lynch and Goldman Sachs & Co. are the bookrunners for the Rule 144A deal, which carries a greenshoe of $100 million.
The notes are non-callable for three years and then subject to a 130% hurdle with a make-whole. There is dividend and takeover protection.
Conversion will be settled in cash, shares or a combination of both.
Proceeds will be used to repurchase about $102.7 million of common stock and for general corporate purposes, which may include the repayment of the company’s 0% convertible notes due 2019.
Illumina is a San Diego-based developer and manufacturer of systems for analysis of genetic variation and biological function for pharmaceutical and biotech companies.
| Issuer: | Illumina, Inc.
|
| Securities: | Convertible notes
|
| Amount: | $650 million
|
| Greenshoe: | $100 million
|
| Maturity: | Aug. 15, 2023
|
| Bookrunners: | BofA Merrill Lynch and Goldman Sachs & Co.
|
| Coupon: | 0%
|
| Conversion premium: | 40%
|
| Conversion price: | $457.77
|
| Conversion rate: | 2.1845
|
| Call options: | Non-callable for three years and then subject to a 130% hurdle with a make-whole
|
| Pricing date: | Aug. 16
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| Settlement date: | Aug. 21
|
| Talk: | Coupon of 0% and an initial conversion premium of 37.5% to 42.5%
|
| Stock symbol: | Nasdaq: ILMN
|
| Stock price: | $326.98 at market close Aug. 16
|
| Market capitalization: | $48.23 billion
|
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