By Stephanie N. Rotondo
Seattle, Aug. 2 – Innoviva Inc. priced a $175 million offering of convertible senior notes due 2025 at par to yield 2.5% with an initial conversion premium of 30%, a market source reported on Wednesday.
The Rule 144A deal came in the middle of the 2.25% to 2.75% yield talk, as well in the middle of the 27.5% to 32.5% premium talk.
Morgan Stanley & Co. LLC and Deutsche Bank Securities Inc. are the bookrunners.
There is a $17.5 million over-allotment option.
Conversion will be settled in cash, common stock, or a combination of the two. The bonds are convertible into 57.9240 common shares per each $1,000 of notes, equal to an initial conversion price of $17.26.
Prior to Feb. 15, 2025, the notes are convertible only in certain circumstances. After that date, the debt can be converted at any time.
The convertibles are non-callable for life.
The transaction is being done as part of the company’s plan to refinance its 9% fixed rate term notes due 2029. Proceeds from the convertibles offering will be used to redeem a portion of the issue on Aug. 15.
The company will also use the funds to purchase $17.5 million of common stock via privately negotiated transactions.
Innoviva is a Brisbane, Calif.-based biopharmaceutical company.
| Issuer: | Innoviva Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $175 million
|
| Greenshoe: | $17.5 million
|
| Maturity: | Aug. 15, 2025
|
| Bookrunners: | Morgan Stanley & Co. LLC and Deutsche Bank Securities Inc.
|
| Coupon: | 2.5%
|
| Price: | Par of $1,000
|
| Yield: | 2.5%
|
| Conversion premium: | 30%
|
| Conversion price: | $17.26 a share
|
| Conversion rate: | 57.9240 common shares
|
| Call options: | None
|
| Net share settlement: | Yes
|
| Contingent conversion: | Yes
|
| Pricing date: | Aug. 2
|
| Settlement date: | Aug. 7
|
| Distribution: | Rule 144A
|
| Talk: | 2.25%-2.75%, up 27.5%-32.5%
|
| Stock symbol: | Nasdaq: INVA
|
| Stock price: | $13.28 as of Aug. 1 close
|
| Market capitalization: | $1.4 billion
|
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