By Stephanie N. Rotondo
Seattle, Aug. 9 – Radius Health Inc. priced a $300 million underwritten public offering of convertible senior notes due 2024 at par to yield 3% with an initial conversion premium of 32.5% on Wednesday, the company said in a press release.
The yield came in the middle of the 2.75% to 3.25% price talk, while the conversion premium came at the cheap end of the 32.5% to 37.5% talk.
J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the joint bookrunners. Citigroup Global Markets Inc. is also a bookrunner.
There is a $45 million over-allotment option.
Conversions will be settled in common stock, cash or a combination of both, at the company’s option. The initial conversion rate is 20.4891 shares per each $1,000 of notes, equal to an initial conversion price of $48.81 a share.
Holders can convert the bonds at any time before June 1, 2024, but only in certain circumstances. That includes if the stock hits a 130% price hurdle or upon a change of control.
After June 1, 2024, the issue can be converted at any time.
The convertibles become redeemable on or after Sept. 1, 2021 if the stock hits a 130% price hurdle.
Holders can put the notes upon a fundamental change.
Proceeds will be used to support the U.S. commercial launch of TYMLOS (abaloparatide) injection and the development of life cycle management activities, such as the investigational abaloparatide transdermal patch, and to advance the development of pipeline product candidates, including a phase 2 clinical trial of elacestrant (RAD1901) in breast cancer and a phase 1 study of RAD140 in breast cancer, and for general corporate purposes.
Radius is a Waltham, Mass.-based biopharmaceutical company.
| Issuer: | Radius Health Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $300 million
|
| Greenshoe: | $45 million
|
| Maturity: | Sept. 1, 2024
|
| Bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Citigroup Global Markets Inc.
|
| Manager: | Leerink Partners LLC
|
| Coupon: | 3%
|
| Price: | Par of $1,000
|
| Yield: | 3%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $48.81 a share
|
| Conversion rate: | 20.4891 shares
|
| Provisional call: | On or after Sept. 1, 2021 if the stock hits a 130% price hurdle
|
| Contingent conversion: | Prior to June 1, 2024, in certain circumstances
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| Pricing date: | Aug. 9
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| Settlement date: | Aug. 14
|
| Talk: | 2.75%-3.25%, up 32.5%-37.5%
|
| Stock symbol: | Nasdaq: RDUS
|
| Stock reference price: | $36.835 as of Aug. 8 close
|
| Market capitalization: | $1.564 billion
|
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