Lexicon Pharmaceuticals greenshoe partially exercised, lifts 5.25% convertibles to $87.5 million

By Jennifer Chiou

New York, Dec. 23 – Lexicon Pharmaceuticals Inc. announced that it issued an additional $7.5 million of its 5.25% seven-year convertible senior notes, bringing the total issue amount to $87.5 million.

According to an 8-K filing with the Securities and Exchange Commission, the additional notes were sold as part of the partial exercise of the $15 million over-allotment option.

As reported, the company priced an upsized $80 million of the notes on Nov. 20 at par with an initial conversion premium of 20%. The Rule 144A deal was initially talked at $75 million in size, and the greenshoe was upsized 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.

J.P. Morgan Securities LLC and Goldman Sachs & Co. were the joint bookrunners.

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 diseases, including diabetes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.