Assertio talks $60 million five-year convertibles to yield 5.5%-6.5%, up 12.5%-17.5%

By Abigail W. Adams

Portland, Me., Aug. 22 – Assertio Holdings Inc. plans to price $60 million of five-year convertible notes after the market close on Monday with price talk for a coupon of 5.5% to 6.5% and an initial conversion premium of 12.5% to 17.5%, according to a market source.

SVB Securities is bookrunner for the Rule 144A offering, which carries a greenshoe of $10 million.

The notes are non-callable until Sept. 8, 2025 and then subject to a 130% hurdle.

The notes will be settled in cash, shares or a combination of both at the company’s option.

Proceeds will be used to repurchase or redeem the company’s 13% senior secured notes due 2024 and for general corporate purposes.

Assertio is a Lake Forest, Ill.-based specialty pharmaceutical company.

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