By Stephanie N. Rotondo
Phoenix, Nov. 8 - Incyte Corp. priced $700 million of convertible senior notes in two tranches, including $350 million of 0.375% notes due 2018 and $350 million of 1.25% notes due 2020, late Thursday, according to a press release.
Both Rule 144A tranches have a $25 million greenshoe and are being sold via Goldman Sachs & Co., J.P. Morgan Securities LLC and BofA Merrill Lynch as joint bookrunning managers.
Interest on both issues will be payable semiannually, and neither issue can be redeemed prior to maturity.
The initial conversion rate per each $1,000 of notes is 19.3207 shares of common stock, representing an initial conversion price of $51.76 per share, or an approximately 40% premium over Thursday's closing share price of $36.97.
Both tranches priced richer than talk: the five-year tranche was seen pricing with a 0.625% to 1.125% coupon and a 35% to 40% initial conversion premium while the seven-year tranche was seen pricing with a 1.5% to 2% coupon and also a 35% to 40% initial conversion premium.
Entities affiliated with Julian C. Baker, a company director, have indicated an interest in purchasing up to $500 million of the notes.
Up to $500 million of the proceeds will be used to repurchase or retire a portion of the company's 4.75% convertible senior notes due 2015 through open-market transactions, negotiated transactions or otherwise.
Remaining proceeds will be used for research and development and other general corporate purposes.
Wilmington, Del.-based Incyte is a biopharmaceutical company.
| Issuer: | Incyte Corp.
|
| Securities: | Convertible senior notes
|
| Amount: | $700 million
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities LLC, BofA Merrill Lynch
|
| Co-managers: | Cowen and Co., Jefferies LLC, JMP Securities, UBS Securities LLC
|
| Conversion premium: | 40%
|
| Conversion price: | $51.76
|
| Conversion ratio: | 19.3207 shares per $1,000 of notes
|
| Call: | Non-callable
|
| Distribution: | Rule 144A
|
| Pricing date: | Nov. 7
|
| Settlement date: | Nov. 14
|
| Stock symbol: | Nasdaq: INCY
|
| Stock price: | $36.97 as of close Nov. 7
|
|
|
| Tranche A
|
| Amount: | $350 million
|
| Greenshoe: | $25 million
|
| Maturity: | Nov. 15, 2018
|
| Coupon: | 0.375%
|
| Talk: | 0.625%-1.125%
|
|
|
| Tranche B
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| Amount: | $350 million
|
| Greenshoe: | $25 million
|
| Maturity: | Nov. 15, 2020
|
| Coupon: | 1.25%
|
| Talk: | 1.5%-2%
|
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