By Abigail W. Adams
Portland, Me., Nov. 10 – Cryoport Inc. priced an upsized $350 million of five-year convertible notes after the market close on Tuesday at par at the rich end of talk with a coupon of 0.75% and an initial conversion premium of 45%, according to a company news release.
Price talk was for a coupon of 0.75% to 1.25% and an initial conversion premium of 40% to 45%, according to a market source.
Jefferies LLC and SVB Leerink LLC are bookrunners for the Rule 144A offering, which carries an upsized greenshoe of $52.5 million.
The initial size of the offering was $300 million with a greenshoe of $45 million.
The notes are non-callable until Dec. 6, 2024 and then subject to a 130% hurdle. They are putable upon a fundamental change.
There is dividend protection.
The notes will be settled in cash, shares or a combination of both at the company’s option.
Concurrently, the company priced a secondary offering of 3,072,038 shares at a price of $81.10.
The company also repurchased $100.7 million of the principal amount of its 3% convertible notes due 2025 for $351.1 million.
Net proceeds from the convertible notes offering are expected to be $339 million or will be $389.9 million if the greenshoe is exercised in full.
Proceeds will be used to cover the cost of the repurchase of the 3% convertible notes and for general corporate purposes.
Cryoport is a Nashville, Tenn.-based cryogenic logistics solutions company that serves the life sciences industry.
Issuer: | Cryoport Inc.
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Securities: | Convertible senior notes
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Amount: | $350 million
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Greenshoe: | $52.5 million
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Maturity: | Dec. 1, 2026
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Bookrunners: | Jefferies LLC and SVB Leerink LLC
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Coupon: | 0.75%
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Price: | Par
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Yield: | 0.75%
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Conversion premium: | 45%
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Conversion price: | $117.59
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Conversion rate: | 8.5038
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Call options: | Non-callable until Dec. 6, 2024 and then subject to a 130% hurdle
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Put options: | Upon a fundamental change
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Pricing date: | Nov. 9
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Settlement date: | Nov. 12
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Distribution: | Rule 144A
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Talk: | Coupon of 0.75% to 1.25% and initial conversion premium of 40% to 45%
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Stock symbol: | Nasdaq: CYRX
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Stock price: | $81.10 in concurrent offering
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Market capitalization: | $3.73 billion
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