By Rebecca Melvin
New York, March 27 - Solazyme Inc. priced an upsized $130 million of 5.5-year convertible senior subordinated notes at par to yield 5% with an initial conversion premium of 20%, according to a term sheet.
The registered offering was initially talked at $100 million in size. Pricing came at the rich end of 5% to 5.5% coupon talk and at the 20% talked premium.
Solazyme also priced 5 million shares of common stock at $11.00 per share for $55 million of proceeds.
The notes have a greenshoe of $19.5 million, which was upsized from $15 million.
Goldman Sachs & Co. was the bookrunner for the notes offering, and Goldman and Morgan Stanley & Co. LLC were the bookrunners for the stock offering.
The share offering has a 750,000-share over-allotment option.
The convertibles are non-callable with no investor puts. There is takeover protection and an early conversion payment under which holders with respect to certain conversions occurring before Jan. 1, 2018, will be entitled to receive an early conversion payment of $83.33 per bond in addition to the shares deliverable upon conversion, and that amount may be settled in cash or shares at the company's option.
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.
| Issuer: | Solazyme Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $130 million, upsized from $100 million
|
| Greenshoe: | $19.5 million, upsized from $15 million
|
| Maturity: | Oct. 1, 2019
|
| Bookrunner: | Goldman Sachs & Co.
|
| Concurrent offering: | $55 million of common stock, or 5 million shares at $11.00 each
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Conversion premium: | 20%
|
| Conversion price: | $13.20
|
| Conversion ratio: | 75.7576 shares
|
| Calls: | Non-callable
|
| Puts: | No
|
| Takeover protection: | Yes
|
| Early conversion payment: | Yes, $83.33 per bond
|
| Price talk: | 5%-5.5%, up 20%
|
| Pricing date: | March 26
|
| Settlement date: | April 1
|
| Distribution: | Registered
|
| Stock symbol: | Nasdaq: SZYM
|
| Stock price: | $11.55 at close March 26
|
| Market capitalization: | $760.80 million
|
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