Solazyme's planned $100 million five-year convertible bonds to yield 5%-5.5%, up 20%

By Rebecca Melvin

New York, March 26 - Solazyme Inc. $100 million of five-year convertible senior subordinated notes were seen pricing with a 5% to 5.5% coupon and an initial conversion premium of about 20%, a syndicate source said Wednesday.

The bonds were being allocated to investors quickly and there was no set time for pricing, the source said.

As previously reported, the registered offering was coming concurrently with an offering of 5 million shares of common stock.

The convertibles have a $15 million greenshoe and were being sold via bookrunner Goldman Sachs & Co.

The share offering has a 750,000-share over-allotment option.

The convertibles are non-callable with no investor puts.

Proceeds will be used to fund capital expenditures, for working capital and for general corporate purposes.

San Francisco-based Solazyme uses plant-based sugars to produce oils for use in the chemicals and fuels industries, as well as for the nutrition, skin and personal care markets.

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