By Rebecca Melvin
New York, May 28 - Spectranetics Corp. priced $200 million of 20-year convertible senior notes at par late Wednesday to yield 2.625% with an initial conversion premium of 40%, according to a syndicate source.
Pricing came toward the rich end of 2.75% to 3.25% coupon talk and beyond the rich end of 32.5% to 37.5% premium talk.
The registered offering has a $30 million greenshoe and was sold via bookrunner Piper Jaffray & Co.
The notes are non-callable for four years, and then provisionally callable for three years if Spectranetics shares exceed 130% of the conversion price for 30 consecutive days.
There are investor puts at years seven, 10 and 15.
There is takeover protection and conversion ratio adjustments for dividends paid on the common stock. The bonds will be physically settled.
Proceeds are intended to fund the company's proposed acquisition of AngioScore Inc. If that acquisition is not completed, proceeds will be used for research and development, commercialization of products, working capital and other general corporate purposes.
Colorado Springs, Colo.-based Spectranetics makes single-use medical devices for the cardiovascular system.
| Issuer: | Spectranetics Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $200 million
|
| Greenshoe: | $30 million
|
| Maturity: | June 15, 2034
|
| Bookrunners: | Piper Jaffray & Co.
|
| Coupon: | 2.625%
|
| Price: | Par
|
| Yield: | 2.625%
|
| Conversion premium: | 40%
|
| Conversion price: | $31.346
|
| Calls: | Non-callable four years then provisionally callable for three years at 130% price hurdle
|
| Puts: | In years seven, 10 and 15
|
| Net share settlement: | No
|
| Contingent conversion: | Yes, at 130%
|
| Takeover protection: | Yes
|
| Price talk: | 2.75%-3.25%, up 32.5%-37.5%
|
| Pricing date: | May 28
|
| Stock symbol: | Nasdaq: SPNC
|
| Stock reference price: | $22.39
|
| Distribution: | Registered
|
| Market capitalization: | $929.9 million
|
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