Synergy Pharmaceuticals to price up to $150 million five-year convertible notes to yield 7.5%

By Rebecca Melvin

New York, Oct. 28 – Synergy Pharmaceuticals Inc. launched an offering of up to $150 million of five-year convertible senior notes in an overnight deal talked to yield a fixed 7.5% with an initial conversion price of $3.11, which matched the stock’s close on Tuesday, according to market sources.

The Rule 144A deal, which has a $22.5 million greenshoe, was being placed via BofA Merrill Lynch as the bookrunner.

The deal was seen pricing before the market open on Wednesday.

The notes are non-callable for life with no puts. Settlement will be in stock.

There is change-of-control protection and dividend protection via a conversion ratio adjustment for any dividends.

Synergy is a New York-based biopharmaceutical company focused primarily on the development of drugs to treat gastrointestinal disorders and diseases.

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