Talk on Pacira's planned $100 million six-year convertibles revised to 3.25% yield, up 32%

By Rebecca Melvin

New York, Jan. 16 - Price talk on Pacira Pharmaceuticals Inc.'s planned $100 million of six-year convertible senior notes was revised during marketing on Wednesday to 3.25% with an initial conversion premium of 32%, according to a syndicate source.

Initially, the Rule 144A deal, which was expected to see final terms after the market close on Wednesday, was talked at a higher 3.5% to 4% coupon. And the revised premium was toward the rich end of initial 27.5% to 32.5% talk.

As previously reported, the offering has a $10 million greenshoe and was being sold via joint bookrunners Jefferies & Co. Inc. and Barclays.

The bonds are non-callable for four years and then are provisionally callable if the stock price exceeds 130% of the conversion price. There is a coupon make-whole payment upon redemption or conversion based upon a fundamental change make-whole table.

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

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

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