By Paul A. Harris
St. Louis, March 16 - Angiotech Pharmaceuticals, Inc. priced a $250 million issue of eight-year senior subordinated notes (B2/B) at par to yield 7¾% on Thursday, according to an informed source.
The yield came at the tight end of the 7¾% to 8% price talk.
Prior to pricing the deal, call protection was modified such that the notes will be callable in year three at 75% of the coupon, after which they will become callable at a premium. Also, the definition of a public equity offering was changed to include equity linked securities.
Credit Suisse and Merrill Lynch & Co. were joint bookrunners for the Rule 144A and Regulation S issue.
Proceeds will be used to help fund the acquisition of American Medical Instruments Holdings Inc.
The issuer is a Vancouver, B.C.-based specialty pharmaceuticals producer.
| Issuer: | Angiotech Pharmaceuticals, Inc.
|
| Amount: | $250 million
|
| Security description: | Senior subordinated notes
|
| Maturity: | April 1, 2014
|
| Bookrunners: | Credit Suisse, Merrill Lynch & Co.
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Spread: | 306 basis points
|
| Call features: | Callable on and after April 1, 2009 at 105.813 (75% of the coupon), 103.875, 101.938, par on and after April 1, 2012 (call protection decreased from four years)
|
| Equity clawback: | For three years for 35% at 107.75 (definition of public equity offerings changed include equity linked securities)
|
| Trade date: | March 16
|
| Settlement date: | March 23
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A/Regulation S
|
| Price talk: | 7¾%-8%
|
|
|
© 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.
