By Abigail W. Adams
Portland, Me., Feb. 5 – OPKO Health, Inc. priced $200 million of six-year convertible senior notes prior to the market open on Tuesday at par with a coupon of 4.5% and an initial conversion premium of 20%, according to a company news release.
Pricing came in line with talk for a coupon of 4.5% and an initial conversion premium of 20%.
Jefferies LLC is the bookrunner for the registered offering, which carries a greenshoe of $30 million.
The notes are non-callable until Feb. 15, 2022 and then 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 for a total of up to 30 million shares.
The shares will be newly issued and cancelled upon the expiration or termination of the share lending agreement.
Net proceeds are expected to be $192.3 million provided the greenshoe is not exercised.
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.
| Issuer: | OPKO Health, Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $200 million
|
| Greenshoe: | $30 million
|
| Maturity: | Feb. 15, 2025
|
| Bookrunner: | Jefferies LLC
|
| Coupon: | 4.5%
|
| Price: | Par
|
| Yield: | 4.5%
|
| Conversion premium: | 20%
|
| Conversion price: | $4.22
|
| Conversion rate: | 236.7424
|
| Call options: | Non-callable until Feb. 15, 2022 then subject to a 130% hurdle
|
| Pricing date: | Feb. 5
|
| Settlement date: | Feb. 7
|
| Distribution: | SEC registered
|
| Talk: | Coupon of 4.5% and initial conversion premium of 20%
|
| Stock symbol: | Nasdaq: OPK
|
| Stock price: | $3.52 at market close Feb. 4
|
| Market capitalization: | $1.97 billion
|
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