By Rebecca Melvin and Stephanie N. Rotondo
Phoenix, Jan. 18 - Theravance Inc. priced $250 million of 10-year convertible subordinated notes after the market close Thursday at par to yield 2.125% with an initial conversion premium of 32.5%, according to an FWP filed with the Securities and Exchange Commission.
The notes were talked with a coupon of 2% to 2.5% and with an initial conversion premium of 27.5% to 32.5%, according to a syndicate source.
The initial conversion rate at 35.9903 common shares per $1,000 of notes. In certain circumstances, the conversion rate will increase to reflect a make-whole premium.
There is a $37.5 million greenshoe on the issue, which was sold via bookrunner Bank of America Merrill Lynch.
The paper is non-callable with no puts.
Proceeds are intended to be used for potential milestone payments to GlaxoSmithKline plc if there is any approval or launch of products under the parties' collaboration, for the potential repayment of debt and for other general corporate purposes.
The company also intends to use a portion of the proceeds to pay the cost of entering into capped call transactions with the underwriter and/or affiliates.
Theravance is a San Francisco-based biopharmaceutical company.
| Issuer: | Theravance Inc.
|
| Securities: | Convertible subordinated notes
|
| Amount: | $250 million
|
| Greenshoe: | $37.5 million
|
| Maturity: | Jan. 15, 2023
|
| Bookrunner: | Bank of America Merrill Lynch
|
| Co-managers: | Leerink Swann LLC, Piper Jaffray & Co.
|
| Coupon: | 2.125%
|
| Price: | Par of $1,000
|
| Yield: | 2.125%
|
| Initial conversion premium: | 32.5%
|
| Initial conversion price: | $27.79
|
| Initial conversion rate: | 35.9903 shares
|
| Talk: | 2% to 2.5% coupon, up 27.5% to 32.5%
|
| Call: | Non-callable
|
| Puts: | None
|
| Pricing date: | Jan. 17
|
| Settlement date: | Jan. 24
|
| Cusip: | 88338TAB0
|
| Stock symbol: | Nasdaq: THRX
|
| Stock price: | $20.97 at close Jan. 17
|
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