Travere Therapeutics talks $250 million seven-year convertibles at 1.75%-2.25%, up 32.5%-37.5%

By Abigail W. Adams

Portland, Me., March 8 – Travere Therapeutics Inc. plans to price $250 million of seven-year convertible notes after the market close on Tuesday with price talk for a coupon of 1.75% to 2.25% and an initial conversion premium of 32.5% to 37.5%, according to a market source.

Jefferies LLC, SVB Leerink LLC, BofA Securities Inc. and Evercore Inc. are joint bookrunners for the Securities and Exchange Commission-registered offering, which carries a greenshoe of $37.5 million.

The notes due March 1, 2029 are non-callable until March 2, 2026 and then subject to a 130% hurdle.

They are putable upon a fundamental change.

Concurrently with the new offering, Travere will repurchase for cash a portion of its outstanding 2.5% convertible notes due 2025 in privately negotiated transactions.

Proceeds will be used to fund the repurchase of the 2025 convertible notes with remaining amounts to be used for general corporate purposes.

Legal counsel for the issuer is being provided by Cooley LLP. Counsel for the underwriters is Latham & Watkins LLP.

Travere Therapeutics is a San Diego-based biopharmaceutical company.

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