Ionis Pharmaceuticals greenshoe exercised, lifts five-year convertible notes to $632.5 million

By Rebecca Melvin

Concord, N.H., April 13 – Underwriters for Ionis Pharmaceuticals Inc.’s 0% five-year convertible notes fully exercised the $82.5 million greenshoe, increasing the total deal size to $632.5 million, according to an 8-K filed with the Securities and Exchange Commission.

The company priced $550 million of the convertibles on April 7 at par with an initial conversion premium of 32.5%, as previously reported.

Pricing came in line with talk for a fixed coupon of 0% and at the midpoint of talk for an initial conversion premium of 30% to 35%, according to a market source.

Goldman Sachs & Co. LLC and Stifel, Nicolaus & Co. Inc. were active bookrunners for the Rule 144A offering.

The initial size of the offering was $500 million with a greenshoe of $75 million.

The notes are non-callable.

They are putable upon a fundamental change.

The notes will be settled in cash, shares or a combination of both at the company’s option.

Ionis Pharmaceuticals is a Carlsbad, Calif.-based biotechnology company.

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