By Abigail W. Adams
Portland, Me., May 8 – Luminex Corp. placed $260 million of five-year convertible notes after the market close on Thursday with a coupon of 3% and an initial conversion premium of 12.5%, according to a company news release.
The private placement was sold to institutional accredited investors and qualified institutional buyers under Section 4(a)(2) of the Securities Act.
The notes are contingently convertible until Nov. 15, 2024. They are putable upon a fundamental change.
They may be settled in cash, shares or a combination of both at the company’s option.
In connection with the pricing of the notes, the company entered into convertible note hedge and warrant transactions.
The strike price of the warrant transactions is $69.89, which represents a premium of 80% over the last reported sales price of stock.
Net proceeds are expected to be $218.3 million.
Approximately $34.7 million of the net proceeds will be used to cover the cost of the hedge transactions with the remaining amount to be used for working capital and general corporate purposes.
Luminex is an Austin, Tex.-based biotechnology company.
| Issuer: | Luminex Corp.
|
| Securities: | Convertible senior notes
|
| Amount: | $260 million
|
| Maturity: | May 15, 2025
|
| Coupon: | 3%
|
| Conversion premium: | 12.5%
|
| Conversion price: | $43.68
|
| Conversion rate: | 22.8918
|
| Put options: | Upon a fundamental change
|
| Pricing date: | May 7
|
| Settlement date: | May 13
|
| Distribution: | Private placement
|
| Stock symbol: | Nasdaq: LMNX
|
| Stock price: | $38.83 at market close May 7
|
| Market capitalization: | $1.59 billion
|
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