By Abigail W. Adams
Portland, Me., June 8 – Ionis Pharmaceuticals Inc. priced $500 million of five-year convertible notes after the market close on Wednesday at par with a coupon of 1.75% and an initial conversion premium of 32.5%, according to a company news release.
Pricing came at the midpoint of talk for a coupon of 1.5% to 2% and at the rich end of talk for an initial conversion premium of 27.5% to 32.5%, according to a market source.
Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC were bookrunners for the Rule 144A offering, which carries a greenshoe of $75 million.
The notes are non-callable until June 20, 2026 and then subject to a 130% hurdle.
They are putable upon a fundamental change.
Ionis entered into privately negotiated transactions to repurchase for cash $434.1 million in principal of its 0.125% convertible notes due 2024 for $420.4 million.
Net proceeds are expected to be $487.6 million or will be $560.8 million if the greenshoe is exercised in full.
Approximately $420.4 million of net proceeds will be used for the repurchase of the 0.125% convertible notes due 2024.
Remaining proceeds will be used for additional repurchases of the 2024 notes, for their repayment at maturity and for general corporate purposes.
Ionis Pharmaceuticals is a Carlsbad, Calif.-based biotech company.
| Issuer: | Ionis Pharmaceuticals Inc.
|
| Amount: | $500 million
|
| Greenshoe: | $75 million
|
| Issue: | Convertible senior notes
|
| Maturity: | June 15, 2028
|
| Bookrunners: | Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC
|
| Coupon: | 1.75%
|
| Price: | Par
|
| Yield: | 1.75%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $53.73
|
| Conversion rate: | 18.6120
|
| Call options: | Non-callable until June 20, 2026 and then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | June 7
|
| Settlement date: | June 12
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 1.5% to 2% and initial conversion premium of 27.5% to 32.5%
|
| Stock symbol: | Nasdaq: IONS
|
| Stock price: | $40.55 at market close June 7
|
| Market capitalization: | $5.82 billion
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