PTC Therapeutics greenshoe ups 1.5% convertibles to $287.5 million

By Angela McDaniels

Tacoma, Wash., Sept. 20 – The underwriter of PTC Therapeutics Inc.’s 1.5% convertible senior notes due 2026 exercised its $37.5 million over-allotment option in full, increasing the size of the issue to $287.5 million.

As previously reported, the company priced $250 million of the convertibles before the open on Wednesday with an initial conversion premium of 30%.

Pricing came at cheap end of talked terms for a coupon of 1% to 1.5% and an initial conversion premium of 30% to 35%.

The Rule 144A deal was sold via bookrunner Credit Suisse Securities (USA) LLC.

The notes are contingently convertible prior to March 15, 2026 if the stock price is greater than or equal to 130% of the conversion price for at least 20 out of 30 trading days, if the trading price of the convertibles is less than 98% of the product of the stock price and the conversion ratio for five consecutive trading days or if the company has issued a notice of redemption. They are freely convertible beginning March 15, 2026.

The notes are non-callable until Sept. 20, 2023 and then are provisionally callable for three years if shares exceed 130% of the conversion price.

South Plainfield, N.J.-based PTC is a biopharmaceutical company. Its lead product is Translama (ataluren) for the treatment of muscular dystrophy and cystic fibrosis and is in phase 3 clinical trials.

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