Salix greenshoe fully exercised, lifts 5.5% 20-year convertibles to $60 million

By Devika Patel

Knoxville, Tenn., Aug. 22 - Underwriters for Salix Pharmaceuticals, Ltd.'s 5.5% 20-year convertible senior notes exercised their over-allotment option in full for $5 million more of the convertibles, increasing the size of the issue to $60 million, the company said in press release.

As previously reported, the company sold the notes at par on Aug. 18 in a Rule 144A deal via bookrunner Bank of America Securities.

The notes have a conversion premium of 20% and a conversion price of $9.25, which equals a conversion ratio of 108.0847.

The notes are non-callable for five years.

Proceeds are to fund potential product acquisition or in-licensing opportunities, to develop and commercialize product candidates and new indications for its rifaximin drug, to provide working capital and for general corporate purposes.

Based in Raleigh, N.C., Salix makes and markets prescription pharmaceutical products for the treatment of gastrointestinal diseases.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.