By Rebecca Melvin
New York, Jan. 25 - OPKO Health Inc. priced an upsized $175 million of 20-year convertible bonds after the market close on Thursday at par to yield 3% with an initial conversion premium of 20%.
Initially the deal was going to be $150 million in size. Pricing came at the midpoint of talk, which was for a 2.75% to 3.25% yield and a 17.5% to 22.5% premium.
Jefferies & Co. Inc. was placement agent for the offering, which was priced under Regulation D private placement with Rule 144A trading capabilities.
The notes are non-callable for four years and then provisionally callable for two years if shares are 130% of the conversion price. The notes are eligible for a coupon make-whole if they are called during the two-year soft call period. After year six, they are freely callable.
There are investor puts in years six, 10 and 15.
Proceeds from the offering were earmarked for general corporate purposes, including research and development expenses, acceleration of clinical trials, acquisitions of new technologies or businesses and other business opportunities.
OPKO is a health care company based in Miami.
| Issuer: | OPKO Health Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $175 million, upsized from $150 million
|
| Maturity: | Feb. 1, 2033
|
| Bookrunner: | Jefferies & Co. Inc.
|
| Coupon: | 3%
|
| Price: | Par
|
| Yield: | 3%
|
| Conversion premium: | 20%
|
| Conversion price: | $7.07
|
| Conversion ratio: | 141.4827
|
| Calls: | Non-callable until Feb. 1, 2017, then provisionally callable at 130%
|
| Coupon make-whole: | If called between Feb. 1, 2017 and Feb. 1, 2019
|
| Puts: | In years six, 10 and 15
|
| Takeover protection: | Yes
|
| Price talk: | 2.75%-3.25%, up 17.5%-22.5%
|
| Pricing date: | Jan. 25
|
| Settlement date: | Jan. 30
|
| Distribution: | Regulation D and Rule 144A
|
| Stock symbol: | NYSE: OPK
|
| Stock price: | $5.89 at close Jan. 24
|
| Market capitalization: | $1.82 billion
|
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