By Sheri Kasprzak
Atlanta, March 15 - Insmed Inc. said it has closed a private placement of convertible notes for $35 million.
The company sold the notes to institutional investors.
The notes mature in five years, bear interest at 5.5% annually and are convertible into common shares at $1.295 each.
The investors also received warrants for 14.9 million shares at $1.36 each for five years.
C.E. Unterberg, Towbin LLC and Trout Capital LLC were the placement agents in the offering.
Based in Richmond, Va., Insmed is a biopharmaceutical company focused on the development of drugs to treat metabolic diseases. The proceeds will be used to fund future development for SomatoKine and for working capital.
| Issuer: | Insmed Inc.
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| Issue: | Convertible notes
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| Amount: | $35 million
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| Maturity: | Five years
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| Coupon: | 5.5%
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| Price: | Par
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| Yield: | 5.5%
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| Conversion price: | $1.295
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| Warrants: | For 14.9 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $1.36
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| Placement agent: | C.E. Unterberg, Towbin LLC and Trout Capital LLC
|
| Announcement date: | March 15
|
| Stock price: | $1.24 at close March 15
|
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