By Susanna Moon
Chicago, June 4 – Sequenom, Inc. said it agreed to issue $85 million of new 5% convertible exchange senior notes due 2018 in exchange for $85 million of 5% convertible senior notes due 2017.
The company entered into separate, privately negotiated exchange agreements with holders of the 5% convertibles issued Sept. 17, 2012, according to a company press release.
After settlement on June 9, there will be $45 million principal amount of the notes left outstanding.
The new notes are convertible at any time prior to the third trading day immediately preceding the maturity date, at the option of the holders, into shares of the company’s common stock.
The company may force conversion if the stock closes at or above 115% of the conversion price of the new notes for at least 20 out of the 30 consecutive trading days ending within five trading days immediately prior to the mandatory conversion notice date.
The conversion rate is initially 216.0644 shares of common stock per $1,000 principal amount, which is an initial conversion price of about $4.63 per share.
Also, holders who convert their notes under a make-whole fundamental change, whose new notes are converted under a mandatory conversion or who convert their notes on a conversion date on which the stock exceeds the conversion price may be entitled to an increase in the conversion rate, the press release noted.
Sequenom is a San Diego-based life sciences company.
| Issuer: | Sequenom, Inc.
|
| Issue: | Convertible exchange senior notes
|
| Amount: | $85 million
|
| Maturity: | Jan. 1, 2018
|
| Coupon: | 5%
|
| Conversion premium: | 37.8%
|
| Conversion price: | $4.63
|
| Conversion rate: | 216.0644 shares per $1,000 principal amount
|
| Call option: | No
|
| Put option: | At par plus accrued interest under fundamental change
|
| Settlement date: | June 9
|
| Stock symbol: | Nasdaq: SQNM
|
| Stock price: | $3.36 at close June 3
|
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