By Kenneth Lim
Boston, Sept. 21 - Incyte Corp. on Wednesday priced within talk $132 million of 4.4-year 3.5% convertible senior notes that bear an initial conversion premium of 126.2%, at a reoffered price of 78.
Price talk guided for a reoffered price of 77 to 79. The notes, which mature in Feb. 15, 2011, have a par value of $1,000 and will yield 9.78% upon maturity.
There is a greenshoe for a further $19.8 million.
Piper Jaffray was the bookrunner of the Rule 144A offering, which priced after the market closed.
The notes have an initial conversion price of $11.22 per share, or an initial conversion rate of 89.1385 shares per note.
The notes are non-callable before Feb. 20, 2007. They may be called until February 2008 at a redemption price of 102%, with a 0.5%-point step down for each year after that.
The notes have dividend protection. Takeover protection is in the form of a put, but there is no premium make-whole feature.
Incyte, a Wilmington, Del.-based drug maker, said it will use the proceeds of the offering to redeem its outstanding 5.5% convertible subordinated notes due Feb. 1, 2007. Any remaining proceeds will be used for general corporate purposes.
| Issuer: | Incyte Corp.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | Piper Jaffray
|
| Amount: | $132 million
|
| Greenshoe: | $19.8 million
|
| Maturity: | Feb. 15, 2011
|
| Coupon: | 3.5%
|
| Price: | 78
|
| Yield: | 9.78%
|
| Conversion premium: | 126.2%
|
| Conversion price: | $11.22
|
| Conversion ratio: | 89.1385
|
| Dividend protection: | Yes
|
| Takeover protection: | Change-of-control put; no premium make-whole
|
| Call protection: | Non-callable before Feb. 20, 2007
|
| Puts: | None
|
| Price talk: | 3.5%, up 126.2%, reoffered at 77-79
|
| Pricing date: | Sept. 20 after the close
|
| Settlement date: | Sept. 26
|
| Distribution: | Rule 144A
|
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