Novocure tightens talk on $500 million five-year convertibles to fixed coupon of 0%, up 50%-52.5%

By Abigail W. Adams

Portland, Me., Nov. 2 – Novocure Ltd. tightened talk on its $500 million offering of five-year convertible notes, which is slated to price after the market close on Monday, to a fixed coupon of 0% and an initial conversion premium of 50% to 52.5%, according to a market source.

Initial price talk was for a coupon of 0% to 0.5% and an initial conversion premium of 42.5% to 47.5%, according to a market source.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC are joint bookrunners for the Rule 144A offering, which carries a greenshoe of $75 million.

The notes are non-callable for three years and then subject to a 130% hurdle with a make-whole.

There is takeover and dividend protection.

Proceeds will be used to further advance clinical and product development, to invest in commercialization activities and for general corporate purposes.

Novocure is a Saint Helier, Jersey-based oncology company.

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