Neurocrine offers $450 million seven-year convertible notes to yield 2.5%-3%, up 37.5%-42.5%

By Stephanie N. Rotondo

Seattle, April 25 – Neurocrine Biosciences Inc. plans to price $450 million of seven-year convertible senior notes with price talk for a 2.5% to 3% yield and an initial conversion premium of 37.5% to 42.5%, a market source reported on Tuesday.

Pricing is expected after Wednesday’s close.

Barclays and Jefferies LLC are the bookrunners on the Rule 144A offering.

The deal includes a $67.5 million greenshoe.

The convertibles are provisionally callable after four years, assuming the stock hits a 130% price hurdle.

Conversions will be settled in cash, common stock or a combination.

Proceeds will be used for general corporate purposes, which may include commercialization expenses, clinical trial and other research and development expenses, capital expenditures, working capital and general and administrative expenses.

Neurocrine is a San Diego-based biotechnology company focused on neurologic, psychiatric and endocrine related disorders.

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