Inovio greenshoe exercise now ups 6.5% convertibles to $78.5 million

By Susanna Moon

Chicago, March 1 – Inovio Pharmaceuticals, Inc. said underwriters exercised their over-allotment option for another $8.5 million of its 6.5% five-year convertible notes on Friday.

This brings the total deal size to $78.5 million, representing an increase of about 21% from the base offering amount, according to a company update on Friday.

As reported, the company priced $65 million of the convertibles with a greenshoe of $20 million before the market open on Feb. 14 at the cheap end of talk at par with a coupon of 6.5% and an initial conversion premium of 15%.

The company then said on Feb. 20 that underwriters exercised $5 million of the over-allotment option, lifting the size of the issue to $70 million.

Price talk had been 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 the joint bookrunners for the Rule 144A deal.

The notes are non-callable until March 1, 2022 and then subject to a 130% hurdle. There are no put options.

They are contingently convertible until Nov. 1, 2023.

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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