By Rebecca Melvin
New York, April 26 - Supernus Pharmaceuticals Inc. priced $75 million of six-year convertible senior notes at par after the market close Thursday to yield 7.5% with an initial conversion premium of 17.5%, according to a syndicate source.
Pricing of the Rule 144A deal came at the cheap end of talk for the coupon, which was 7% to 7.5%, and at the midpoint of 15% to 20% talked premium.
There is a $15 million greenshoe for the deal, which was sold via joint bookrunners Jefferies & Co. and Piper Jaffray & Co.
The notes have contingent conversion if shares rise above the conversion price for 20 out of 30 trading days.
The notes are also non-callable for until May 1, 2017 and then are provisionally callable if shares rise to 140% of the conversion price for 20 out of 30 days.
Proceeds will be used to repay a secured credit facility, to fund commercialization of its approved and tentatively approved drugs, Oxtellar XR and Trokendi XR, to develop its pipeline products and for general corporate purposes.
Supernus is a Rockville, Md.-based specialty pharmaceutical company focusing on treatment of central nervous system diseases, including epilepsy.
| Issuer: | Supernus Pharmaceuticals Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $75 million
|
| Greenshoe: | $15 million
|
| Maturity: | May 1, 2019
|
| Bookrunners: | Jefferies & Co., Piper Jaffray & Co.
|
| Coupon: | 7.5%
|
| Price: | Par
|
| Yield: | 7. 5%
|
| Conversion premium: | 17.5%
|
| Conversion price: | $5.30
|
| Conversion ratio: | 188.7059
|
| Contingent conversion: | Yes
|
| Calls: | Non-callable until May 1, 2017, then provisionally callable at 140%
|
| Puts: | No puts
|
| Takeover protection: | Yes
|
| Price talk: | 7%-7.5%, up 15%-20%
|
| Pricing date: | April 25
|
| Settlement date: | May 3
|
| Stock symbol: | Nasdaq: SUPN
|
| Stock price: | $4.51 at close April 25
|
| Distribution: | Rule 144A
|
| Market capitalization: | $154.2 million
|
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