Chicago, Aug. 23 – Assertio Holdings Inc. priced a $60 million offering of 6.5% five-year convertible senior notes at par with a 12.5% initial conversion premium after the market close on Monday, according to a press release.
Pricing came at the cheap end of talk, initially at 5.5% to 6.5% for the coupon and for an initial conversion premium of 12.5% to 17.5%.
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.
Issuer: | Assertio Holdings, Inc.
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Amount: | $60 million
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Greenshoe: | $10 million
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Issue: | Convertible senior notes
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Maturity: | Sept. 1, 2027
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Bookrunner: | SVB Securities
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Coupon: | 6.5%
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Price: | Par
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Yield: | 6.5%
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Conversion premium: | 12.5%
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Conversion price: | $4.09
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Conversion rate: | 244.2003
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Call features: | Non-callable until Sept. 8, 2025, then subject to 130% hurdle
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Change of control: | At par
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Trade date: | Aug. 23
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Settlement date: | Aug. 25
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Distribution: | Rule 144A
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Price talk: | 5.5% to 6.5% coupon and 12.5% to 17.5% initial conversion premium
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Stock symbol: | Nasdaq: ASRT
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Stock price: | $3.64 at market close on Aug. 22
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Market capitalization: | $125.26 million
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