By Wendy Van Sickle
Columbus, Ohio, Nov. 2 – Novocure Ltd. priced $500 million of 0% five-year convertible notes after the market close on Monday with an initial conversion premium of 50%, according to a news release.
Talk had been tightened to a fixed coupon of 0% and an initial conversion premium of 50% to 52.5% from initial price talk 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.
| Issuer: | Novocure Ltd.
|
| Securities: | Convertible senior notes
|
| Amount: | $500 million
|
| Greenshoe: | $75 million
|
| Maturity: | Nov. 1, 2025
|
| Bookrunners: | J.P. Morgan Securities LLC and Wells Fargo Securities LLC
|
| Coupon: | 0%
|
| Conversion premium: | 50%
|
| Conversion price: | $168.24
|
| Conversion rate: | 5.9439
|
| Call options: | Non-callable until for three years and then subject to a 130% hurdle
|
| Pricing date: | Nov. 2
|
| Settlement date: | Nov. 5
|
| Distribution: | Rule 144A
|
| Talk: | 0%, up 50%-52.5%; tightened from 0%-0.5%, up 42.5%- 47.5%
|
| Stock symbol: | NYSE: NVCR
|
| Stock price: | $112.16 at market close Nov. 2
|
| Market capitalization: | $11.42 billion
|
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