By Rebecca Melvin
New York, Aug. 8 - Isis Pharmaceuticals Inc. priced $201.25 million of seven-year convertible notes at par to yield 2.75% with a 32.5% initial conversion premium, according to a syndicate source.
A $26.25 million over-allotment option was exercised concurrently with the original $175 million base deal.
Pricing came at revised talk, which was tightened during marketing from the original 3% to 3.5% coupon range and 27.5% to 32.5% premium range.
Goldman Sachs & Co. and J.P. Morgan Securities LLC were joint bookrunners, with co-managers Stifel Nicolaus, BMO Capital Markets and Needham & Co.
The notes are non-callable until Oct. 5, 2016 and then are provisionally callable subject to a 130% price hurdle. There are no puts, but the paper has takeover and dividend protection.
Proceeds will be used to repay the company's 2.625% convertibles due 2027.
Isis is a Carlsbad, Calif.-based drug maker.
| Issuer: | Isis Pharmaceuticals Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $201.25 million
|
| Maturity: | Oct. 1, 2019
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities LLC
|
| Co-managers: | Stifel Nicolaus, BMO Capital Markets, Needham & Co.
|
| Coupon: | 2.75%
|
| Price: | Par
|
| Yield: | 2.75%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $16.63
|
| Conversion ratio: | 60.1368
|
| Price talk: | 2.75%, up 32.5%, revised from 3%-3.5%, up 27.5%-32.5%
|
| Call: | Non-callable until Oct. 5, 2016, then provisionally callable at 130%
|
| Put: | No puts
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Pricing date: | Aug. 7
|
| Settlement date: | Aug. 13
|
| Distribution: | Rule 144A
|
| Stock symbol: | Nasdaq: ISIS
|
| Stock price: | $12.55 at close Aug. 7
|
| Market capitalization: | $1.26 billion
|
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