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InterMune greenshoe exercised, lifting convertibles to $155.25 million
By Toni Weeks
San Diego, Sept. 19 - Underwriters for InterMune, Inc.'s offering of 2.5% convertible senior notes due 2018 exercised their over-allotment option in full on Sept. 14 for $20.25 million more of the convertibles, increasing the size of the issue to $155.25 million, the company said in an 8-K filed Monday with the Securities And Exchange Commission.
As previously reported, the initial conversion price is $31.80, and the conversion premium 32.5%.
The registered notes were 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 were the co-managers.
Concurrently, InterMune sold 4 million shares of common stock for $24 per share for a total of $96 million. The stock offering had a $14.4 million greenshoe, which was also fully exercised on Sept. 14, lifting the stock offering to $110.4 million.
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.
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