Published on 5/2/2007 in the Prospect News Convertibles Daily and Prospect News PIPE Daily.
New Issue: Neurochem plans $80 million private placement of convertibles
By Laura Lutz
Des Moines, May 2 - Neurochem Inc. announced a private placement of $80 million principal amount of convertible notes.
The company plans to sell $40 million principal amount of 6% senior convertible notes due May 2, 2027 and $40 million of 5% senior subordinated convertible notes due May 2, 2012.
Both series of notes will have an initial conversion price equal to the lesser of $12.68 and the five-day weighted average trading price of the company's shares.
The 5% notes will be subject to mandatory conversion within five days of the effectiveness of a registration statement for the underlying securities.
The investors will also receive warrants for 2,250,645 shares. The warrants will be exercisable at $12.68 per share until May 2, 2012.
The investors included Hudson Bay Fund, LP, Hudson Bay Overseas Fund, Ltd., J.P. Morgan Omni SPC, Ltd. - BIOV1 Segregated Portfolio, Enable Growth Partners LP, Enable Opportunity Partners LP, Radcliffe SPC, Ltd. for the Class A Segregated Portfolio, Capital Ventures International, Portside Growth and Opportunity Fund, Tang Capital Partners, LP, JGB Capital, LP, JGB Capital Offshore Ltd. and Iroquois Capital, LP.
Rodman & Renshaw, LLC is the placement agent.
Proceeds will be used for general corporate purposes.
Neurochem is a biomedical company based in Laval, Quebec.
| Issuer: | Neurochem Inc.
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| Issue: | 6% senior convertible notes and 5% senior subordinated convertible notes
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| Amount: | $80 million
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| Agent: | Rodman & Renshaw, LLC
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| Investors: | Hudson Bay Fund, LP, Hudson Bay Overseas Fund, Ltd., J.P. Morgan Omni SPC, Ltd. - BIOV1 Segregated Portfolio, Enable Growth Partners LP, Enable Opportunity Partners LP, Radcliffe SPC, Ltd. for the Class A Segregated Portfolio, Capital Ventures International, Portside Growth and Opportunity Fund, Tang Capital Partners, LP, JGB Capital, LP, JGB Capital Offshore Ltd., Iroquois Capital, LP.
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| Announcement date: | May 2
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| Stock symbol: | Nasdaq: NRMX
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| Stock price: | $9.10 at close May 2
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|
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| 6% notes
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| Amount: | $40 million
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| Maturity: | May 2, 2027
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| Coupon: | 6%
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| Price: | Par
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| Yield: | 6%
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| Conversion price: | Lesser of $12.68 and the five-day weighted average price of the company's shares
|
| Warrants: | For 2,250,645 shares
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| Warrant expiration: | May 2, 2012
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| Warrant strike price: | $12.68
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|
|
| 5% notes
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| Amount: | $40 million
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| Maturity: | May 2, 2012
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| Coupon: | 5%
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| Price: | Par
|
| Yield: | 5%
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| Conversion price: | Lesser of $12.68 and the five-day weighted average price of the company's shares
|
| Warrants: | See above
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