Omeros talks $200 million long five-year convertible notes to yield 5%-5.5%, up 22.5%-27.5%

By Abigail W. Adams

Portland, Me., Aug. 10 – Omeros Corp. plans to price $200 million of long five-year convertible notes after the market close on Tuesday with price talk for a coupon of 5% to 5.5% and an initial conversion premium of 22.5% to 27.5%, according to a market source.

BofA Securities Inc. and J.P. Morgan Securities LLC are joint bookrunners for the registered offering, which carries a greenshoe of $30 million.

The notes are non-callable until Aug. 15, 2023 and then subject to a 130% premium with a make-whole.

There is dividend and takeover protection.

In connection with the pricing of the convertible notes, the company will enter into capped call transactions.

The company plans to repurchase a portion of its 6.25% convertible notes due 2023 in privately negotiated transactions.

Concurrently with the convertible notes offering, the company plans to price a secondary stock offering of $125 million.

The secondary offering carries a greenshoe of $18.75 million.

Proceeds from the notes offering will be used to cover the cost of the call spread and to fund the repurchase of the 6.25% convertible notes due 2023.

Remaining proceeds and proceeds from the equity offering will be used for general corporate purposes.

Omeros is a Seattle-based late-stage biopharmaceutical company.

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