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OPKO Health greenshoe lifts 3.75% convertibles to $230 million
By Wendy Van Sickle
Columbus, Ohio, Jan. 9 – Underwriters for OPKO Health Inc.’s 3.75% five-year convertible notes fully exercised their $30 million greenshoe, enlarging the total size of the deal to $230 million, according to a news release.
The company priced $200 million of the convertibles after the market close on Jan. 4 at par with an initial conversion premium of 26.83%, as previously reported.
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 will be $221.4 million with the greenshoe.
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.
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