Nashville, Jan. 20 - Antigenics Inc. sold a downsized $50 million of 20-year convertible notes at par to yield 5.25% with a 20% initial conversion premium via sole bookrunner UBS Investment Bank.
The Rule 144A deal, cut from $60 million, priced at the cheap end of revised price talk for a 5.25% coupon and 20% to 25% initial conversion premium. Original guidance put the coupon at 4.75% to 5.25% and premium at 35% to 40%.
Up to $10 million of proceeds will be used to purchase stock concurrently with the note offering. The company said it intends to use remaining proceeds for continued funding of its clinical programs, potential licenses and acquisitions, working capital, capital expenditures and general corporate purposes.
The company's most advanced product candidate is Oncophage, which is in clinical trials as a treatment in renal cell carcinoma and in melanoma. The company has said that it has been required by the Food and Drug Administration to do a second round of Phase III clinical trials for the treatment, a development that could delay the potential launch of the drug until 2008. Results from recently completed additional Phase III clinical trials of the treatment for kidney cancer are expected in early 2005, the company has said.
Terms of the deal are:
| Issuer: | Antigenics Inc.
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| Issue: | Convertible senior unsecured notes
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| Bookrunner: | UBS Investment Bank
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| Amount: | $50 million, cut from $60 million
|
| Greenshoe: | $10 million, up from $9 million
|
| Maturity: | Jan. 20, 2025
|
| Coupon: | 5.25%
|
| Price: | Par
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| Yield: | 5.25%
|
| Conversion premium: | 20%
|
| Conversion price: | $10.76
|
| Conversion ratio: | 92.9023
|
| Contingent conversion: | No
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| Contingent payment: | No
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| Dividend protection: | Yes
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| Takeover protection: | Yes
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| Call: | Non-callable for 7 years
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| Put: | In years 7, 10 and 15
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| Price talk: | Original: 4.75-5.25%, up 35-40%.
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| Revised: 5.25%, up 20-25%
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| Pricing date: | Jan. 19, after market close
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| Settlement date: | Jan. 25
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| Distribution: | Rule 144A
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