By Abigail W. Adams
Portland, Me., Nov. 9 – Omeros Corp. priced $210 million of five-year convertible notes prior to the market open Friday at par with a coupon of 6.25% and an initial conversion premium of 20%, according to a company news release.
Pricing came in line with talk for a fixed coupon of 6.25% and at the cheap end of talk for a 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. They are convertible into cash, shares or a combination of both at the company’s option.
In connection with the pricing, Omeros entered into capped call transactions with a cap price of $28.8360, representing a premium of 80% over the last reported sales price of stock, according to the news release.
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.
Omeros is a Seattle-based commercial-stage biopharmaceutical company.
| Issuer: | Omeros Corp.
|
| Securities: | Convertible senior notes
|
| Amount: | $210 million
|
| Greenshoe: | $40 million
|
| Maturity: | Nov. 15, 2023
|
| Bookrunner: | Cantor Fitzgerald & Co.
|
| Coupon: | 6.25%
|
| Price: | Par
|
| Yield: | 6.25%
|
| Conversion premium: | 20%
|
| Conversion price: | $19.22
|
| Conversion rate: | 52.0183
|
| Call options: | Non-callable until Nov. 15, 2019 then subject to a 150% hurdle
|
| Pricing date: | Nov. 9
|
| Settlement date: | Nov. 15
|
| Distribution: | Rule 144A
|
| Talk: | Fixed coupon of 6.25% and an initial conversion premium of 20% to 25%
|
| Stock symbol: | Nasdaq: OMER
|
| Stock price: | $16.02 at market close Nov. 8
|
| Market capitalization: | $777.93 million
|
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