Amicus greenshoe exercised, lifts 3% convertibles to $250 million

By Marisa Wong

Morgantown, W.Va., Dec. 21 – Amicus Therapeutics, Inc. said the underwriters of its recent offering of seven-year convertible senior notes exercised their $25 million over-allotment option in full, bringing the total issue size to $250 million.

The company priced $225 million of the notes after the market close on Dec. 15 with a 3% coupon and a 27.5% initial conversion premium.

The deal came at the middle of talk for a 2.75% to 3.25% yield and an initial conversion premium of 25% to 30%, as previously reported.

Goldman Sachs & Co., J.P. Morgan Securities LLC, BofA Merrill Lynch and Leerink Partners are the bookrunners for the Rule 144A offering. Cowen & Co. is a lead manager.

Conversions will be settled with common stock, cash or a combination, at the company’s option.

The convertibles become provisionally callable after four years if the stock price hits a 130% price hurdle.

Amicus will enter into capped call transactions to reduce the dilution to stockholders caused by the offering.

Proceeds from the deal will be used, in part, to fund the capped call transactions. Additionally, the company plans to use the funds to refinance existing unsecured debt and for general corporate purposes.

Amicus is a Cranbury, N.J.-based biotechnology company focused on rare and orphan diseases.

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