By Rebecca Melvin
New York, Feb. 1 - Savient Pharmaceuticals Inc. priced an upsized $200 million of seven-year convertible senior notes at par after the market close Monday to yield 4.75% with an initial conversion premium of 25%, according to a filed term sheet.
The registered, off-the-shelf offering was initially talked at $125 million in size and had been upsized during marketing to $175 million.
The convertible senior notes priced at the midpoint of coupon talk, which was 4.5% to 5%, and at the rich end of 20% to 25% premium talk.
J. P. Morgan Securities LLC was the bookrunner for the offering, which has a $30 million greenshoe. Lazard Capital Markets LLC and Cowen & Co. LLC acted as the co-managers.
The bonds are non-callable until Feb. 1, 2015, and there are no puts.
The bonds have contingent conversion if the share price for 20 out of 30 days is more than 130% of the conversion price. There is takeover protection.
Proceeds will be used to commercialize Savient's Krystexxa drug in the United States, to fund clinical development, to seek regulatory approval for Krystexxa in the European Union and for general corporate purposes.
East Brunswick, N.J.-based Savient is a specialty biopharmaceutical company focused on developing and commercializing Krystexxa, which received regulatory approval for the treatment of chronic gout in September 2010.
| Issuer: | Savient Pharmaceuticals Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $200 million, upsized from $125 million
|
| Greenshoe: | $30 million
|
| Maturity: | Feb. 1, 2018
|
| Bookrunner: | J.P. Morgan Securities LLC
|
| Co-managers: | Lazard Capital Markets LLC, Cowen & Co. LLC
|
| Coupon: | 4.75%
|
| Price: | Par
|
| Yield: | 4.75%
|
| Conversion premium: | 25%
|
| Conversion price: | $11.54
|
| Conversion ratio: | 86.6739 shares per bond
|
| Call: | Non-callable until Feb. 1, 2015
|
| Puts: | No puts
|
| Contingent conversion: | Yes, at 130%
|
| Price talk: | 4.5%-5%, up 20%-25%
|
| Takeover protection: | Yes, via make-whole table
|
| Pricing date: | Jan. 31
|
| Settlement date: | Feb. 4
|
| Distribution: | Registered, off-the-shelf
|
| Stock symbol: | Nasdaq: SVNT
|
| Stock reference price: | $9.23
|
| Market capitalization: | $652 million
|
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