Ascendis Pharma greenshoe ups 2.25% convertibles to $575 million

By Wendy Van Sickle

Columbus, Ohio, March 29 – Underwriters for Ascendis Pharma A/S’ 2.25% six-year convertible notes fully exercised their $75 million greenshoe, lifting the total size of the deal to $575 million, according to a 6-K filing with the Securities and Exchange Commission.

The company priced the original $500 million of the convertibles after the market close on March 24 at par with an initial conversion premium of 42.5%, as previously reported.

Pricing came at the midpoint of talk for a coupon of 2% to 2.5% and at the rich end of talk for an initial conversion premium of 37.5% to 42.5%, according to a market source.

J.P. Morgan Securities LLC and Evercore Inc. were bookrunners for the Rule 144A offering.

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

They are putable upon a fundamental change.

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

Net proceeds are estimated to be $557.9 million with the greenshoe exercised in full.

Approximately $116.7 million of net proceeds will be used to fund the share repurchase. Remaining proceeds will be used 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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