Nashville, Dec. 16 - Abgenix Inc. sold an upsized $225 million of seven-year convertible senior notes at par to yield 1.75% with a 30% initial conversion premium via sole bookrunner Goldman Sachs & Co.
The Rule 144A deal, boosted from $150 million, priced at the aggressive end of guidance for a 1.75% to 2.25% coupon and 25% to 30% initial conversion premium.
The senior unsecured notes will be non-callable for five years.
There is full dividend and takeover protection for holders.
Fremont, Calif.-based Abgenix - a biotech firm focused on treatments for cancer, inflammation, metabolic, autoimmune, cardiovascular and infectious diseases - intends to use some proceeds from time to time to retire a portion of its outstanding 3.5% convertible notes due 2007. Otherwise, the company plans to use proceeds for research and development, capital expenditures, working capital and other corporate purposes.
Terms of the deal are:
| Issuer: | Abgenix Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | Goldman Sachs & Co.
|
| Amount: | $225 million, up from $150 million
|
| Greenshoe: | $75 million, up from $25 million
|
| Maturity: | Dec. 21, 2011
|
| Coupon: | 1.75%
|
| Price: | Par
|
| Yield: | 1.75%
|
| Conversion premium: | 30%
|
| Conversion price: | $12.82
|
| Conversion ratio: | 78.0153
|
| Contingent conversion: | No
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| Contingent payment: | No
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| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call: | Non-callable for 5 years
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| Price talk: | 1.75-2.25%, up 25-30%
|
| Pricing date: | Dec. 15, after market close
|
| Settlement date: | Dec. 21
|
| Distribution: | Rule 144A
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