Neurocrine greenshoe increases 2.25% convertibles to $517.5 million

By Wendy Van Sickle

Columbus, Ohio, May 2 – Underwriters for Neurocrine Biosciences Inc.’s seven-year 2.25% convertible senior notes fully exercised their $67.5 million greenshoe, bringing the total deal size to $517.5 million, according to a Tuesday 8-K filing with the Securities and Exchange Commission.

As previously reported, on April 26 the company priced $450 million of the convertibles with an initial conversion premium of 42.5%.

Talk had been for a 2.5% to 3% yield and a premium of 37.5% to 42.5%.

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.

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

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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