By Abigail W. Adams
Portland, Me., May 7 – Apellis Pharmaceuticals, Inc. announced a $300 million add-on to its 3.5% convertible notes due Sept. 15, 2026 for an aggregate purchase price of $328.9 million on Thursday, according to a company news release.
J. Wood Capital Advisors LLC acted as placement agent for the private placement with a number of institutional investors.
The add-on will form a single series and have the same terms as the $200 million principal amount of the 3.5% notes due 2026 issued on Sept. 16, 2019.
However, the add-on will have a different issue date, issue price, Cusip number and transfer restrictions, according to the news release.
In connection with the placement, the company entered into capped call transactions.
Net proceeds are expected to be $323 million.
Approximately $43.1 million will be used to cover the cost of the call spread with the remaining amount to be used to fund the clinical development and potential commercialization of pegcetacoplan, a treatment for blood disorders.
Apellis Pharmaceuticals is a Waltham, Mass-based biopharmaceutical company.
| Issuer: | Apellis Pharmaceuticals, Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $300 million add-on
|
| Maturity: | Sept. 15, 2026
|
| Placement agent: | J. Wood Capital Advisors LLC
|
| Coupon: | 3.5%
|
| Conversion price: | $39.46
|
| Conversion rate: | 25.3405
|
| Call options: | Non-callable until Sept. 20, 2023 then subject to a 130% hurdle
|
| Put options: | None
|
| Pricing date: | May 7
|
| Settlement date: | May 12
|
| Distribution: | Private placement
|
| Original issue: | $200 million issued Sept. 16, 2019
|
| Stock symbol: | Nasdaq: APLS
|
| Stock price: | $35.84 at market close May 6
|
| Market capitalization: | $2.41 billion
|
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