By Abigail W. Adams
Portland, Me., May 20 – Tricida Inc. priced $175 million of seven-year convertible notes after the market close on Tuesday at the cheap end of talk at par with a coupon of 3.5% and an initial conversion premium of 25%, according to a company news release.
Price talk was for a coupon of 3% to 3.5% and an initial conversion premium of 25% to 30%, according to a market source.
Goldman Sachs & Co. LLC was the bookrunner for the Rule 144A offering, which carries a greenshoe of $25 million.
The notes are contingently convertible until Feb. 15, 2027. They are non-callable until May 20, 2024 and then subject to a 130% hurdle.
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.
Net proceeds are expected to be $168.8 million, or $193 million if the greenshoe is exercised in full.
Proceeds will be used for working capital and general corporate purposes.
Tricida is a San Francisco-based pharmaceutical company.
| Issuer: | Tricida Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $175 million
|
| Greenshoe: | $25 million
|
| Maturity: | May 15, 2027
|
| Bookrunner: | Goldman Sachs & Co. LLC
|
| Coupon: | 3.5%
|
| Price: | Par
|
| Yield: | 3.5%
|
| Conversion premium: | 25%
|
| Conversion price: | $33.23
|
| Conversion rate: | 30.0978
|
| Call options: | Non-callable until May 20, 2024 and then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | May 19
|
| Settlement date: | May 22
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 3% to 3.5% and initial conversion premium of 25% to 30%
|
| Stock symbol: | Nasdaq: TCDA
|
| Stock price: | $26.58 at market close May 19
|
| Market capitalization: | $1.33 billion
|
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