By Sheri Kasprzak
New York, June 22 - ISTA Pharmaceuticals, Inc. has entered into agreements to wrap a $40 million private placement of senior subordinated convertible notes.
The 8% notes are due in five years and are convertible into common shares at $7.75 each, a 22.2% premium to the company's $6.34 closing stock price on June 21.
The investors in the offering include HBK Master Fund LP; Deerfield Partners, LP; Deerfield International Ltd.; Sprout Capital IX, LP; Sprout Entrepreneurs Fund, LP; Sprout IX Plan Investors, LP; Visium Balanced Fund, LP; Visium Balanced Offshore Fund, Ltd.; Visium Long Bias Offshore Fund, Ltd.; Atlas Master Fund, Ltd.; LBI Group, Inc.; and Highbridge International LLC.
The deal is set to close on June 23.
Banc of America Securities LLC is the placement agent.
After the third anniversary, the holders may require ISTA to repurchase the notes at par plus interest.
Proceeds from the offering will be used for the commercialization of ISTA's lead product containing prednisolone acetate and tobramycin. The launch of the product is expected to coincide with the company's filing of a New Drug Application with the Food and Drug Administration and the FDA's acceptance and approval of the application.
Located in Irvine, Calif., ISTA is a specialty pharmaceutical company focused on treatments for eye conditions like dry eye, vitreous hemorrhage, diabetic retinopathy, glaucoma and ocular pain.
| Issuer: | ISTA Pharmaceuticals, Inc.
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| Issue: | Senior subordinated convertible notes
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| Amount: | $40 million
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| Maturity: | Five years
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| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | $7.75
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| Initial conversion premium: | 22.2%
|
| Warrants: | No
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| Investors: | HBK Master Fund LP; Deerfield Partners, LP; Deerfield International Ltd.; Sprout Capital IX, LP; Sprout Entrepreneurs Fund, LP; Sprout IX Plan Investors, LP; Visium Balanced Fund, LP; Visium Balanced Offshore Fund, Ltd.; Visium Long Bias Offshore Fund, Ltd.; Atlas Master Fund, Ltd.; LBI Group, Inc.; and Highbridge International LLC
|
| Placement agent: | Banc of America Securities LLC
|
| Announcement date: | June 22
|
| Settlement date: | June 23
|
| Stock symbol: | Nasdaq: ISTA
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| Stock price: | $6.34 at close June 21
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