By Abigail W. Adams
Portland, Me., May 11 – Insmed Inc. priced $500 million of seven-year convertible notes after the market close on Monday at par with a coupon of 0.75% and an initial conversion premium of 30%, according to an FWP filing with the Securities and Exchange Commission.
Pricing came at the midpoint of talk for a coupon of 0.5% to 1% and at the rich end of talk for an initial conversion premium of 25% to 30%, according to a market source.
J.P. Morgan Securities LLC, SVB Leerink LLC and Morgan Stanley & Co. LLC were bookrunners for the registered offering, which carries a greenshoe of $75 million.
The notes are non-callable until June 6, 2025 and then subject to a 130% hurdle.
They are putable upon a fundamental change.
The notes will be settled in cash, shares or a combination of both at the company’s option.
In a concurrent offering, the company priced 10 million shares of common stock at a public offering price of $25.00.
Proceeds from the convertible notes offering will be used, in part, to repurchase $225 million of the principal amount of the company’s 1.75% convertible notes due 2025 for $237 million plus interest in privately negotiated transactions.
Remaining proceeds from the convertible notes offering and proceeds from the secondary offering will be used to fund the commercialization, research and development of the company’s drug candidates.
Insmed is a Bridgewater, N.J.-based biopharmaceutical company.
| Issuer: | Insmed Inc.
|
| Securities: | Convertible senior notes
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| Amount: | $500 million
|
| Greenshoe: | $75 million
|
| Maturity: | June 1, 2028
|
| Bookrunners: | J.P. Morgan Securities LLC, SVB Leerink LLC and Morgan Stanley & Co. LLC
|
| Coupon: | 0.75%
|
| Price: | Par
|
| Yield: | 0.75%
|
| Conversion premium: | 30%
|
| Conversion price: | $32.5
|
| Conversion rate: | 30.7692
|
| Call options: | Non-callable until June 6, 2025 and then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
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| Pricing date: | May 10
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| Settlement date: | May 13
|
| Distribution: | Registered
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| Talk: | Coupon of 0.5% to 1% and initial conversion premium of 25% to 30%
|
| Stock symbol: | Nasdaq: INSM
|
| Stock price: | $25.00 in concurrent offering
|
| Market capitalization: | $2.68 billion
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