By Abigail W. Adams
Portland, Me., April 13 – Mirum Pharmaceuticals Inc. priced an upsized $275 of six-year convertible notes after the market close on Wednesday at par with a coupon of 4% and an initial conversion premium of 35%, according to a company news release and a market source.
Pricing came in line with talk for a fixed coupon of 4% and richer than talk for a fixed conversion premium of 32.5%.
J.P. Morgan Securities LLC (lead left) and Evercore ISI were bookrunners for the Rule 144A offering, which carries an upsized greenshoe of $41.25 million.
The initial size of the offering was $200 million with a greenshoe of $30 million.
The notes are non-callable until May 5, 2026 and then are redeemable for cash subject to a 130% hurdle.
They are putable upon a fundamental change.
The notes will be settled in cash, shares, or a combination of both at the company’s option.
Net proceeds are expected to be $265.5 million or will be $305.4 million if the greenshoe is exercised in full.
Proceeds will be used to repurchase the revenue interests under the Revenue Interest Purchase Agreement with an affiliate of Oberland Capital Management LLC at a call price of $192.7 million and for general corporate purposes.
Mirum Pharmaceuticals is a Foster City, Calif.-based biopharmaceutical company.
| Issuer: | Mirum Pharmaceuticals Inc.
|
| Amount: | $275 million
|
| Greenshoe: | $41.25 million
|
| Issue: | Convertible senior notes
|
| Maturity: | May 1, 2029
|
| Bookrunners: | J.P. Morgan Securities LLC and Evercore ISI
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Conversion premium: | 35%
|
| Conversion price: | $31.74
|
| Conversion rate: | 31.5075
|
| Call options: | Non-callable until May 5, 2026 and then redeemable for cash subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | April 12
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| Settlement date: | April 17
|
| Distribution: | Rule 144A
|
| Talk: | Fixed coupon of 4% and fixed conversion premium of 32.5%
|
| Stock symbol: | Nasdaq: MIRM
|
| Stock price: | $23.51 at market close April 12
|
| Market capitalization: | $892.23 million
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