Assertio greenshoe lifts 6.5% five-year convertibles to $70 million

By Marisa Wong

Los Angeles, Aug. 25 – Assertio Holdings Inc. announced that the initial purchaser of its offering of 6.5% convertible senior notes due Sept. 1, 2027 exercised its $10 million over-allotment option in full, bringing the total deal size to $70 million, according to a Thursday press release.

Assertio priced $60 million of the five-year convertibles at par to yield 6.5% with a 12.5% initial conversion premium after the market close on Monday, as previously reported.

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.

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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