By Rebecca Melvin
New York, Nov. 21 – Lexicon Pharmaceuticals Inc. priced an upsized $80 million of seven-year convertible senior notes at par to yield 5.25% with an initial conversion premium of 20% late Thursday, according to a news release.
The Rule 144A deal was initially talked at $75 million in size. The greenshoe was upsized to $15 million from $11.25 million.
Pricing came at the cheap end of talked terms, which was for a 4.75% to 5.25% coupon and a 20% to 25% premium.
Lexicon also sold $50 million of common shares, or 49,751,244 shares at $1.005 per share, in a secondary offering.
J.P. Morgan Securities LLC and Goldman Sachs & Co. were the joint bookrunners of both offerings.
Proceeds will be used for clinical development of the company’s drug candidates and other non-clinical research and development. Proceeds may also be used to acquire or invest in complementary products and technologies or for general corporate purposes.
Based in The Woodlands, Texas, Lexicon is a biopharmaceutical company with clinical-stage programs for drugs to treat various diseases, including diabetes.
| Issuer: | Lexicon Pharmaceuticals Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $80 million, upsized from $75 million
|
| Greenshoe: | $15 million, upsized from $11.25 million
|
| Maturity: | Dec. 1, 2021
|
| Concurrent offering: | $50 million of common stock, or 49,751,244 shares at $1.005 per share
|
| Bookrunners: | J.P. Morgan Securities LLC, Goldman Sachs & Co.
|
| Coupon: | 5.25%
|
| Price: | Par
|
| Yield: | 5.25%
|
| Conversion premium: | 20%
|
| Conversion price: | $1.206 per share
|
| Conversion ratio: | 829.1874 shares
|
| Takeover protection: | Yes
|
| Calls: | Non-callable
|
| Pricing date: | Nov. 20
|
| Settlement date: | Nov. 26
|
| Distribution: | Rule 144A
|
| Price talk: | 4.75%-5.25%, up 20%-25%
|
| Stock symbol: | Nasdaq: LXRX
|
| Stock price: | $1.005 at close Nov. 20
|
| Market capitalization: | $479.1 million
|
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