By Abigail W. Adams
Portland, Me., June 29 – Intrexon Corp. priced $200 million of five-year convertible notes after the market close on Thursday at the cheap end of talk with a coupon of 3.5% and an initial conversion premium of 27.5%, according to a company news release.
Price talk was for a coupon of 3% to 3.5% and an initial conversion premium of 27.5% to 32.5%, according to a market source.
J.P. Morgan Securities LLC is the bookrunner for the registered offering. The deal initially had a greenshoe of $30 million, however, the greenshoe was removed from the final terms.
Concurrently with the convertible notes offering, Intrexon priced $100 million, or 7,479,431 shares, of common stock at $13.37 per share.
The newly priced shares will be loaned to JPMorgan in a share lending agreement, according to an FWP filing with the Securities and Exchange Commission.
The short position created by the share loan is meant to enable hedging activity, according to the SEC filing.
Chief executive officer and principal shareholder Randal Kirk has agreed to purchase all of the shares in the share lending agreement.
The notes are contingently convertible until April 1, 2023. They are non-callable. Holders may require the company to redeem the notes at par plus accrued interest upon a fundamental change.
Conversions may be settled in cash, shares or a combination of both at the company’s option.
Proceeds are expected to be $193.9 million. Proceeds will be used for general corporate purposes or strategic acquisitions and investments.
Intrexon is a Germantown, Md.-based biotechnology company.
| Issuer: | Intrexon Corp.
|
| Securities: | Convertible senior notes
|
| Amount: | $200 million
|
| Greenshoe: | None
|
| Maturity: | July 1, 2023
|
| Bookrunners: | J.P. Morgan Securities LLC
|
| Coupon: | 3.5%
|
| Price: | Par
|
| Conversion premium: | 27.5%
|
| Conversion price: | $17.05
|
| Conversion rate: | 58.6622
|
| Call options: | Non-callable
|
| Put options: | Upon a fundamental change
|
| Pricing date: | June 28
|
| Settlement date: | July 3
|
| Talk: | Coupon of 3% to 3.5% and an initial conversion premium of 27.5% to 32.5%
|
| Stock symbol: | NYSE: XON
|
| Stock price: | $13.37 at market close June 28
|
| Market capitalization: | $1.88 billion
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
