By Stephanie N. Rotondo and Wendy Van Sickle
Seattle, April 26 – Neurocrine Biosciences Inc. priced $450 million of seven-year 2.25% convertible senior notes on Wednesday evening with an initial conversion premium of 42.5%, the rich end of talk, according to a press release.
The convertibles priced richer than yield talk of 2.5% to 3% yield and at the rich end of premium talk of 37.5% to 42.5%, a market source reported on Tuesday.
The convertibles have contingent conversion. The initial conversion rate will be 13.1711 shares per $1,000 principal amount of notes, which is equivalent to an initial conversion price of about $75.92 per share, a 42.5% premium to the stock’s closing price of $53.28 on Wednesday.
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.
| Issuer: | Neurocrine Biosciences Inc.
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| Securities: | Convertible senior notes
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| Amount: | $450 million
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| Greenshoe: | $67.5 million
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| Maturity: | May 15, 2024
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| Bookrunners: | Barclays and Jefferies LLC
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| Coupon: | 2.25%
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| Conversion premium: | 42.5%
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| Conversion price: | $75.92
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| Conversion rate: | 13.1711 shares
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| Call option: | Provisionally callable after four years, assuming the stock hits a 130% price hurdle
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| Pricing date: | April 26
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| Settlement date: | May 15
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| Talk: | 2.5% to 3% yield and initial conversion premium of 37.5% to 42.5%
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| Stock symbol: | Nasdaq: NBIX
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| Stock price: | $53.28, closing price on Wednesday
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| Market capitalization: | $4.83 billion
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