Inotek Pharmaceuticals offers $50 million convertible notes due 2021 at 5.5%-6%, up 15%-20%

By Stephanie N. Rotondo

Seattle, Aug. 1 – Inotek Pharmaceuticals Corp. plans to sell $50 million of convertible senior notes due Aug. 1, 2021, the company said in a press release on Monday.

Price talk is 5.5% to 6%, with the initial conversion premium slated to be in a 15% to 20% range.

The underwritten public offering has a $7.5 million over-allotment option.

Cowen & Co. LLC is the bookrunner. Perella Weinberg Partners LP and J. Wood Capital Advisors LLC are acting as financial advisers.

Interest will be paid semiannually. The notes can be converted at any time at the holders’ option until the close of business on the second business day immediately preceding the maturity.

The company also has the option to redeem the notes ahead of maturity should the common stock underlying the debt trade at 200% of the conversion price for 20 days during a 30-day period. The company can also redeem the issue upon a fundamental change.

Proceeds will be used to fund continued testing of the company’s trabodenoson drug as a monotherapy and as a fixed-dose combination with latanoprost for the reduction of intraocular pressure. Funds will also be used for general corporate purposes.

© 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.