By Rebecca Melvin
New York, Jan. 25 - Auxilium Pharmaceuticals Inc. priced an upsized $325 million of 5.5-year convertible senior notes on Thursday at par to yield 1.5% and with an initial conversion premium of 32.5%, according to a term sheet.
The deal was more than 50% larger than the initially talked base deal size.
The registered, off-the-shelf deal now has a $25 million greenshoe, which was downsized from $30 million.
Pricing came at the price points talked during marketing after they were revised tighter from initial talk of a 1.75% to 2.25% yield and a 27.5% to 32.5% premium.
Joint bookrunners were Goldman Sachs & Co. and J.P. Morgan Securities LLC.
The bonds are non-callable with no puts. There is takeover protection. And in connection with the offering, the company entered into note hedge and warrant transactions or purchased a call spread, which raised the premium from the issuer's perspective.
Proceeds will be used for general corporate purposes, which many include the acquisition of businesses, products, or product rights or technologies, and also to pay for the call spread.
Based in Malvern, Pa., Auxilium is a specialty biopharmaceutical company.
| Issuer: | Auxilium Pharmaceuticals Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $325 million, upsized from $200 million
|
| Greenshoe: | $25 million, downsized from $30 million
|
| Maturity: | July 15, 2018
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities LLC
|
| Co-managers: | Cowen & Co., RBC Capital Markets
|
| Coupon: | 1.5%
|
| Price: | Par
|
| Yield: | 1.5%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $24.17
|
| Conversion ratio: | 41.3770
|
| Calls: | Non-callable
|
| Puts: | No
|
| Call spread: | Yes
|
| Takeover protection: | Yes
|
| Price talk: | 1.75%- 2.25%, up 27.5%-32.5%
|
| Pricing date: | Jan. 24
|
| Settlement date: | Jan. 30
|
| Distribution: | Registered, off the shelf
|
| Stock symbol: | Nasdaq: AUXL
|
| Stock price: | $18.24 at close Jan. 24
|
| Market capitalization: | $900 million
|
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