Mirum Pharmaceuticals talks $200 million six-year convertible notes to yield 4%, up 32.5%

By Abigail W. Adams

Portland, Me., April 12 – Mirum Pharmaceuticals Inc. plans to price $200 million of six-year convertible notes after the market close on Wednesday with price talk for a fixed coupon of 4% and a fixed conversion premium of 32.5%, according to a market source.

J.P. Morgan Securities LLC (lead left) and Evercore ISI are bookrunners for the Rule 144A offering, which carries 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.

Proceeds will be used with other funds 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.

Mirum Pharmaceuticals is a Foster City, Calif.-based biopharmaceutical company.

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