Pacira Pharmaceuticals to price $100 million six-year convertibles at 3.5%-4%, up 27.5%-32.5%

By Rebecca Melvin

New York, Jan. 15 - Pacira Pharmaceuticals Inc. planned to price $100 million of six-year convertible senior notes after the market close Wednesday that were talked to yield 3.5% to 4% with an initial conversion premium of 27.5% to 32.5%, according to a syndicate source.

The Rule 144A offering has a $10 million greenshoe and was getting done via bookrunners Jefferies & Co. Inc. and Barclays.

The bonds are non-callable for four years and then are provisionally callable subject to a 130% price hurdle to the conversion price. There is standard takeover and dividend protection, and there is a coupon make-whole feature.

About $30 million in proceeds will be used to repay amounts outstanding under the company's senior secured credit facility, with the remainder of the proceeds to fund continued commercialization of Exparel, a long-acting, non-opioid postsurgical analgesic for postsurgical pain management, the development of additional indications for Exparel and for general corporate purposes.

Parsippany, N.J.-based Pacira is a specialty pharmaceutical company.

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