By Rebecca Melvin
New York, Jan. 17 - Pacira Pharmaceuticals Inc. priced an upsized $110 million of six-year convertible senior notes at par to yield 3.25% with an initial conversion premium of 32.5%, according to a syndicate source.
The Rule 144A deal was initially talked at $100 million in size. Pricing came at talked terms, which were tightened during marketing from a 3.5% to 4% coupon and a 27.5% to 32.5% premium.
The deal has a $10 million greenshoe and was 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 focused on acute care medical needs.
| Issuer: | Pacira Pharmaceuticals Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $110 million, upsized from $100 million
|
| Greenshoe: | $10 million
|
| Maturity: | Feb. 1, 2019
|
| Bookrunners: | Jefferies & Co. Inc., Barclays
|
| Coupon: | 3.25%
|
| Price: | Par
|
| Yield: | 3.25%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $24.82
|
| Conversion ratio: | 40.2945
|
| Talk: | 3.25%, up 32.5%; revised from 3.5%-4% coupon, up 27.5%-32.5%
|
| Calls: | Non-callable for four years, then provisionally callable at 130% price hurdle
|
| Takeover protection: | Yes, with coupon make whole
|
| Pricing date: | Jan.16
|
| Settlement date: | Jan. 23
|
| Distribution: | Rule 144A
|
| Stock symbol: | Nasdaq: PCRX
|
| Stock price: | $18.73 at close June 16
|
| Market capitalization: | $609.72 million
|
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