By Abigail W. Adams
Portland, Me., Jan. 5 – OPKO Health Inc. priced $200 million of five-year convertible notes after the market close on Thursday at par with a coupon of 3.75% and an initial conversion premium of 26.83%, according to a company news release.
Pricing came at the cheap end of talk for a coupon of 3.25% to 3.75% and toward the cheap end of talk for an initial conversion premium of 25% to 30%.
J.P. Morgan Securities LLC was bookrunner for the Rule 144A offering, which carries a greenshoe of $30 million.
The notes are non-callable.
They are putable upon a fundamental change.
The company entered into privately negotiated transactions to repurchase for cash $144.4 million in principal of its outstanding 4.5% convertible notes due 2025.
In a concurrent private placement, entities affiliated with OPKO chair and CEO Phillip Frost, OPKO vice-chair and chief technical officer Jane Hsiao and other existing holders will acquire $71.1 million of additional 3.75% convertible notes due 2029 in exchange for $71.1 million of 5% convertible promissory notes, which will include about $5 million in unpaid interest.
Net proceeds are expected to be $192.5 million or will be $221.4 million if the greenshoe is exercised in full.
Approximately $50 million of net proceeds will be used to purchase stock in privately negotiated transactions with the initial purchasers of the notes and $146.3 million and cash on hand will be used to repurchase the 4.5% convertible notes due 2025.
Remaining proceeds will be used for general corporate purposes.
OPKO Health is a Miami-based biopharmaceutical and diagnostics company.
| Issuer: | OPKO Health Inc.
|
| Amount: | $200 million
|
| Greenshoe: | $30 million
|
| Issue: | Convertible senior notes
|
| Maturity: | Jan. 15, 2029
|
| Bookrunner: | J.P. Morgan Securities LLC
|
| Coupon: | 3.75%
|
| Price: | Par
|
| Yield: | 3.75%
|
| Conversion premium: | 26.83%
|
| Conversion price: | $1.15
|
| Conversion rate: | 869.5652
|
| Call options: | Non-callable
|
| Put options: | Upon a fundamental change
|
| Pricing date: | Jan. 4
|
| Settlement date: | Jan. 9
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 3.25% to 3.75% and initial conversion premium of 25% to 30%
|
| Stock symbol: | Nasdaq: OPK
|
| Stock price: | $0.91 at market close Jan. 4
|
| Market capitalization: | $700.93 million
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
