Inovio Pharmaceuticals talks $65 million five-year convertible notes to yield 6%-6.5%, up 15%-20%

By Abigail W. Adams

Portland, Me., Feb. 13 – Inovio Pharmaceuticals, Inc. plans to price $65 million of five-year convertible notes after the market close on Wednesday with price talk for a coupon of 6% to 6.5% and an initial conversion premium of 15% to 20%, according to a market source.

Piper Jaffray & Co. and Cantor Fitzgerald & Co. are joint bookrunners for the Rule 144A deal, which carries a greenshoe of $20 million.

The notes are non-callable for three years and then subject to a 130% hurdle. There are no put options.

There is takeover and dividend protection.

The notes will be settled in cash, shares or a combination of both at the company’s option.

Proceeds will be used for general corporate purposes, including clinical trial, research and development and manufacturing expenses.

Inovio Pharmaceuticals is a Plymouth Meeting, Pa.-based late-stage biotechnology company.

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