Apellis Pharmaceuticals to sell $200 million seven-year convertibles to yield 3%-3.5%, up 25%-30%

By Rebecca Melvin

New York, Sept. 11 – Apellis Pharmaceuticals Inc. was talking a $200 million offering of seven-year convertible notes to yield 3% to 3.5% with an initial conversion premium of 25% to 30%, according to a market source after the market close on Wednesday.

Pricing of the deal was expected to occur overnight.

J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are active bookrunners of the Rule 144A deal, which has a $30 million greenshoe.

The notes have standard takeover and dividend protection.

The proceeds are earmarked to pay the cost of the capped call, to fund clinical development, research and development activities, for working capital and for other general corporate purposes.

The biopharmaceutical company is based in Crestwood, Ky.

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