By Abigail W. Adams
Portland, Me., Sept. 13 – Amphastar Pharmaceuticals Inc. priced $300 million of long five-year convertible senior notes after the market close on Tuesday at par with a coupon of 2% and an initial conversion premium of 35%, according to a market source and a company news release.
There is a $45 million over-allotment option.
The notes priced at the cheap end of price talk for a coupon of 1.5% to 2% and at the rich end of talk for an initial conversion premium of 30% to 35%.
Jefferies LLC (lead left), BofA Securities Inc., Wells Fargo Securities LLC and J.P. Morgan Securities LLC were the bookrunners for the Rule 144A offering.
The notes are non-callable until Sept. 20, 2026 and then subject to a 130% premium.
They are putable upon a fundamental change.
The notes will be settled in cash up to the principal amount with any excess to be settled in cash, shares or a combination of both.
Net proceeds are expected to be $290.2 million or will be $333.9 million if the greenshoe is exercised in full.
Approximately $200 million of net proceeds will be used to repay borrowings under the company’s term loan, $50 million will be used to repurchase common stock in privately negotiated transactions with remaining amounts to be used for general corporate purposes.
Amphastar is a Rancho Cucamonga, Calif.-based specialty pharmaceutical company.
| Issuer: | Amphastar Pharmaceuticals Inc.
|
| Amount: | $300 million
|
| Greenshoe: | $45 million
|
| Issue: | Convertible senior notes
|
| Maturity: | March 15, 2029
|
| Bookrunners: | Jefferies LLC (lead left), BofA Securities Inc., Wells Fargo Securities LLC and J.P. Morgan Securities LLC
|
| Coupon: | 2%
|
| Price: | Par
|
| Yield: | 2%
|
| Conversion premium: | 35%
|
| Conversion price: | $62.96
|
| Conversion rate: | 15.8821
|
| Call options: | Non-callable until Sept. 20, 2026 and then subject to a 130% premium
|
| Put options: | Upon a fundamental change
|
| Pricing date: | Sept. 12
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| Settlement date: | Sept. 15
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| Distribution: | Rule 144A
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| Talk: | Coupon of 1.5% to 2% and initial conversion premium of 30% to 35%
|
| Stock symbol: | Nasdaq: AMPH
|
| Stock price: | $46.64 at market close Sept. 12
|
| Market capitalization: | $2.28 billion
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