Incyte greenshoe exercised, raising convertibles to $400 million

By Marisa Wong

Milwaukee, Sept. 30 – Incyte Corp. announced that the underwriters of its recent offering of 4.75% six-year convertible senior notes exercised the $50 million over-allotment option in full, raising the total amount of the convertibles to $400 million. The Rule 144A sale was completed on Wednesday, according to a press release.

Incyte priced an upsized $350 million of convertibles due 2015 on Sept. 24 to yield 4.75% with an initial conversion premium of 30%.

Goldman Sachs & Co. was bookrunner, with Morgan Stanley and J.P. Morgan as co-managers.

Incyte estimates that the net proceeds from the offering will be $387.3 million.

The company repurchased $86.3 million of its existing 3.5% convertible senior notes due 2011 and $99.9 million of its existing 3.5% convertible subordinated notes due 2011 concurrently with the private placement.

Incyte intends to use remaining proceeds to repurchase or retire outstanding debt through open market and negotiated transactions and for general corporate purposes.

Incyte is a Wilmington, Del.-based biopharmaceutical company.

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