Morning Commentary: OPKO Health convertible notes price, hold on trading debut

By Abigail W. Adams

Portland, Me., Jan. 5 – The convertibles primary market opened for business in the first trading week of 2024 with the first of what sources expect to be many refinancing deals.

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%.

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%.

Approximately $146.3 million of net proceeds and cash on hand will be used to repurchase for cash $144.4 million in principal of its outstanding 4.5% convertible notes due 2025.

OPKO Health’s offering was small and clubby with the deal largely limited to holders of the outstanding notes.

Stock got destroyed on the heels of the new offering and continued to plunge on Friday.

However, OPKO’s new 3.75% notes were holding up well amid the continued destruction in stock.

The 3.75% notes traded down to 99.625 early in the session with stock off another 4%.

The notes expanded about 0.5 point dollar-neutral, a source said.

OPKO’s stock traded down to $0.86, a decrease of 4.71%, shortly before 11 a.m. ET.

Stock sank almost 30% on Thursday after the convertible notes offering was announced.

© 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.