By Ronda Fears
Memphis, March 24 - BioMarin Pharmaceutical, Inc. raised $117 million from a follow-on offering of 9 million shares of common stock off the shelf priced at $13 each, discounted from Thursday's closing level of $13.13, via bookrunner Merrill Lynch & Co.
Novato, Calif.-based BioMarin plans to use proceeds - along with those from the sale of $150 million of convertible bonds due 2013 - to fund the commercialization and additional clinical trials of Phenoptin, and potential acquisitions in addition to possible buybacks of some or all of its $125 million convertible bonds due 2008, which become callable on June 20 this year.
The seven-year convertible bond issue was upsized to $150 million from $125 million and priced with a coupon of 2.5% for a 27.5% initial conversion premium. The coupon came at the aggressive end of price talk that called for a yield of 2.5% to 3.0% and initial conversion premium of 22.5% to 27.5%. Merrill was lead manager of the convertible offering. The company said it will net $145.5 million from the bond sale.
| Issuer: | BioMarin Pharmaceutical, Inc.
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| Issue: | Follow-on stock offering
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| Gross proceeds: | $117 million
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| Net proceeds: | $111.15 million
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| Shares: | 9 million shares
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| Greenshoe: | 1.35 million shares
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| Price: | $13.00 per share
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| Bookrunner: | Merrill Lynch
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| Co-managers: | SG Cowen, Leerink Swann, Pacific Growth and Rodman & Renshaw
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| Pricing date: | March 23
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| Settlement date: | March 29
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| Stock symbol: | Nasdaq: BMRN
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| Stock price: | $13.13 at close March 23
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