Synergy greenshoe lifts 7.5% five-year convertibles to $200 million

By Susanna Moon

Chicago, Oct. 30 – Synergy Pharmaceuticals Inc. said that underwriters fully exercised the $25 million over-allotment option on its 7.5% five-year convertible senior notes.

The greenshoe exercise brings the total deal size to $200 million, according to a news release.

As previously announced, Synergy priced an upsized $175 million of the convertibles in an overnight deal on Oct. 29 with an initial conversion price of $3.11.

The Rule 144A deal was talked at launch for up to $150 million in size with a $22.5 million greenshoe.

Pricing came at fixed price points that were talked at launch. BofA Merrill Lynch was the bookrunner.

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.

Proceeds will be used to fund the clinical development of plecanatide, with any remaining proceeds for working capital and other general corporate purposes.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.