Retrophin talks $200 million seven-year convertibles to yield 2.25%-2.75%, up 32.5%-37.5%

By Abigail W. Adams

Portland, Me., Sept. 4 – Retrophin, Inc. plans to price $200 million of seven-year convertible notes after the market close on Wednesday with price talk for a coupon of 2.25% to 2.75% and an initial conversion premium of 32.5% to 37.5%, according to a market source.

Barclays and Jefferies & Co. are joint bookrunners for the registered offering, which carries a greenshoe of $30 million.

The notes are non-callable until Sept. 15, 2022 and then subject to a 130% hurdle. They are contingently convertible until May 15, 2025. The notes will be settled in cash, shares or a combination of both.

Proceeds will be used to repurchase a portion of the company’s 4.5% convertible notes due 2019. Retrophin may also exchange, repurchase or induce conversion of an additional amount of the 4.5% notes at the completion of the offering, according to a 424B5 filing with the Securities and Exchange Commission.

The remaining proceeds will be used for general corporate purposes, which may include research and development, commercialization and potential acquisitions, including the potential exercise of the company’s option to acquire Censa Pharmaceuticals Inc.

Retrophin is a San Diego-based biopharmaceutical company specializing in rare diseases.

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