Ascendis Pharma talks $500 million six-year convertibles to yield 2%-2.5%, up 37.5%-42.5%

By Abigail W. Adams

Portland, Me., March 23 – Ascendis Pharma A/S plans to price $500 million of six-year convertible notes after the market close on Thursday with price talk for a coupon of 2% to 2.5% and an initial conversion premium of 37.5% to 42.5%, according to a market source.

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

The notes are non-callable until April 7, 2025 and then subject to a 130% hurdle.

Concurrently, the company plans to repurchase up to 1 million of the company’s American Depositary Shares in privately negotiated transactions effected through the initial purchasers of the notes or their agents.

Proceeds will be used to fund the share repurchase, to support the commercialization and development of products in the pipeline and for general corporate purposes.

Ascendis is a Copenhagen-based biopharmaceutical company.

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