By Angela McDaniels
Tacoma, Wash., Sept. 13 - InterMune, Inc. priced $135 million of 2.5% convertible senior notes due 2018 after the close on Tuesday.
The initial conversion price is $31.80, and the conversion premium 32.5%, according to a company news release.
The registered notes have a $20.25 million greenshoe and are being sold via joint bookrunners Goldman Sachs & Co. and J.P. Morgan Securities LLC. JMP Securities LLC, Leerink Swann LLC, Oppenheimer & Co. Inc. and Wells Fargo Securities LLC are the co-managers.
Concurrently, InterMune is selling 4 million shares of common stock for $24 per share for a total of $96 million. The stock offering has a $14.4 million greenshoe.
The convertibles are non-callable until Sept. 20, 2015 and then are provisionally callable at par subject to a 130% price hurdle. The holders will have a put option at par upon a change of control.
Prior to pricing, price talk on the yield was dropped to 2.5% to 2.75%, and the initial conversion premium was tightened to 32.5%, according to a market source. Previous price talk was a yield of 3.25% to 3.75% and a conversion premium of 27.5% to 32.5%.
Proceeds will be used to fund the commercial launch of InterMune's Esbriet drug in the European Union, to fund its Ascend trial and for general corporate purposes.
Brisbane, Calif.-based InterMune is a biotech concern focused on treatments for pulmonary, infectious and hepatic diseases.
| Issuer: | InterMune, Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $135 million
|
| Greenshoe: | $20.25 million
|
| Maturity: | Sept. 15, 2018
|
| Bookrunners: | Goldman Sachs & Co. and J.P. Morgan Securities LLC
|
| Co-managers: | JMP Securities LLC, Leerink Swann LLC, Oppenheimer & Co. Inc. and Wells Fargo Securities LLC
|
| Coupon: | 2.5%
|
| Price: | Par
|
| Yield: | 2.5%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $31.80
|
| Conversion ratio: | 31.4465
|
| Call option: | At par after Sept. 20, 2015 subject to 130% price hurdle
|
| Put option: | At par upon a change of control
|
| Price talk: | 2.5%-2.75%, up 32.5%
|
| Pricing date: | Sept. 13, after the close
|
| Settlement date: | Sept. 19
|
| Distribution: | Registered, off the shelf
|
| Stock symbol: | Nasdaq: ITMN
|
| Stock price: | $24.20 at close Sept. 13
|
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