Pernix plans to price $120 million six-year convertibles to yield 3.75%-4.25%, up 27.5%-32.5%

By Rebecca Melvin

New York, April 15 – Pernix Therapeutics Holdings Inc. plans to sell $120 million of six-year convertible senior notes in a private offering expected to price after the close on Thursday, according to market sources.

The 4 (2) Regulation D deal, with Rule 144A trading capabilities, was talked to yield 3.75% to 4.25% with an initial conversion premium of 27.5% to 32.5%.

The notes are convertibles under certain conditions. They are non-callable for four years and then are provisionally callable if shares exceed 130% of the conversion price. Investors will be compensated via a make-whole table in the event of an early call.

Proceeds will be used to finance the cash consideration of its previously announced acquisition of the Zohydro ER franchise, for related fees and expenses, with remaining proceeds for working capital and other general corporate purposes, including acquisitions or investments.

Morristown, N.J.-based Pernix is a specialty pharmaceutical company.

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