Impax Labs plans to price $500 million seven-year convertibles to yield 1.5%-2%, up 32.5$-37.5%

By Rebecca Melvin

New York, June 24 – Impax Laboratories Inc. plans to price $500 million of seven-year convertible notes before the market open Thursday to yield 1.5% to 2% with a 32.5% to 37.5% initial conversion premium, according to market sources.

The Rule 144A deal has a $100 million greenshoe and is being sold via RBC Capital Markets LLC.

The notes are non-callable with no puts. The notes settle in cash, stock or a combination at the issuer’s option.

In connection with the pricing of the notes, Impax plans to enter into convertible note hedge and warrant transactions, or call spread, with Royal Bank of Canada, an affiliate of RBC Capital Markets LLC.

Proceeds are expected to be used to pay the net cost of the call spread, to repay all outstanding indebtedness under the company’s credit facility and for general corporate purposes.

Impax is a specialty pharmaceutical company based in Hayward, Calif.

© 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.