OPKO Health plans to price $200 million six-year convertible notes to yield 4.5%, up 20%

By Abigail W. Adams

Portland, Me., Feb. 4 – OPKO Health, Inc. plans to price $200 million of six-year convertible notes after the market close on Monday at par with a coupon of 4.5% and an initial conversion premium of 20%, according to a market source.

Jefferies LLC is bookrunner for the registered offering, which carries a greenshoe of $30 million.

The notes are non-callable for three-years and then callable subject to a 130% hurdle plus a make-whole.

There is takeover and dividend protection.

In connection with the offering, OPKO Health will enter into a share lending agreement with the shares to be newly issued and cancelled upon the expiration or termination of the share lending agreement.

Proceeds will be used for research and development, working capital, capital expenditures, acquisitions, repayment of debt and general corporate purposes.

The debt repayment will include the payment of $28.8 million outstanding under the company’s line of credit with an affiliate of the chairman and chief executive officer.

OPKO Health is a Miami, Fla.-based diversified health care company.

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