By Abigail W. Adams
Portland, Me., May 30 – Theratechnologies Inc. priced $50 million of five-year convertible notes in a bought deal after the market close on Wednesday with a coupon of 5.75% and a conversion price of $14.85, according to a company news release.
RBC Capital Markets is the lead underwriter of the deal, which will be marketed by way of short form prospectus in Canada and offered through private placement in the United States.
The deal carries a $7.5 million greenshoe.
The notes are non-callable until June 30, 2021 when they may be redeemed at par plus accrued interest subject to a 130% hurdle.
Proceeds will be used to fund the $23.85 million due under the EMD Serono termination agreement related to the repurchase of the commercial rights of the pharmaceutical Egrifta. Remaining proceeds will be used for the approval and commercialization of Trogarzo in Europe and for general corporate purposes.
Theratechnologies is a Montreal-based specialty pharmaceutical company focusing on the medical needs of HIV patients.
| Issuer: | Theratechnologies Inc.
|
| Securities: | Convertible unsecured senior notes
|
| Amount: | $50 million
|
| Greenshoe: | $7.5 million
|
| Maturity: | June 30, 2023
|
| Bookrunners: | RBC Capital Markets
|
| Coupon: | 5.75%
|
| Price: | Par
|
| Conversion price: | $14.85
|
| Conversion rate: | 67.3401
|
| Call options: | Non-callable until June 30, 2021 then subject to a 130% hurdle
|
| Pricing date: | May 30
|
| Settlement date: | June 19
|
| Stock symbol: | TSX: TH
|
| Stock price: | C$13.97 at market close May 30
|
| Market capitalization: | C$1.05 billion
|
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