ANI Pharmaceuticals to price $100 million five-year convertibles to yield 3%-3.5%, up 25%-30%

By Rebecca Melvin

New York, Dec. 4 – ANI Pharmaceuticals Inc. plans to price $100 million of five-year convertible senior notes after the market close Thursday to yield 3% to 3.5% with an initial conversion premium of 25% to 30%, according to market sources.

The registered, off-the-shelf deal has a $15 million greenshoe and was being sold via bookrunners Guggenheim Securities, LLC and Nomura Securities International Inc.

The notes are non-callable and have standard takeover and dividend protection. They will settle in cash, stock, or a combination at the issuer’s option.

In connection with the offering, the company plans to enter into privately negotiated convertible note hedge and warrant transactions, or a call spread, with initial purchasers of the bonds.

A portion of the proceeds will be used to pay the net cost of the call spread. Remaining proceeds will be used for research, development and commercialization of drug products, to acquire complementary businesses, products, and technologies that ANI may identify from time to time and for other working capital and general corporate purposes.

Baudette, Minn.-based ANI is a specialty pharmaceutical company targeting development of narcotics, oncolytics, hormones and steroids and extended release and combination products.

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