Omeros talks $210 million five-year convertible notes with fixed 6.25% coupon, up 20%-25%

By Abigail W. Adams

Portland, Me., Nov. 8 – Omeros Corp. plans to price $210 million of five-year convertible notes at par prior to the market open on Friday with price talk for a fixed coupon of 6.25% and an initial conversion premium of 20% to 25%, according to a market source.

Cantor Fitzgerald & Co. is the structuring adviser for the Rule 144A deal, which carries a greenshoe of $40 million.

The notes are non-callable until Nov. 15, 2019 and are then subject to a 150% hurdle.

In connection with the pricing, Omeros will enter into capped call transactions.

Proceeds will be used to cover the cost of the call spread, to repay the full outstanding amount under the secured term loan agreement with CRG Servicing LLC, which has an interest rate of 12.25% and matures on Sept. 30, 2022, and for general corporate purposes, according to a company news release.

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

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