New York, Oct. 29 - Xcyte Therapies Inc. priced an upsized $26 million offering of convertible exchangeable preferred stock to yield 6% with a 17.5% initial conversion premium.
The deal was increased from an initial size of $17.25 million.
There is a $3.9 million greenshoe, upsized from $2.25 million.
Piper Jaffray is bookrunner for the registered offering with JMP Securities as joint lead manager.
Xcyte, a Seattle-based biotechnology company, will use proceeds for working capital and general corporate purposes.
The company will be able to force conversion of the preferreds if its stock trades above 150% of the conversion price for 20 out of 30 trading days.
For both voluntary and forced conversions, there is a dividend make-whole through Nov. 3, 2007.
The preferreds are perpetual but are callable from Nov. 6, 2007 onwards.
Xcyte also has the option of exchanging the preferreds for convertible subordinated debentures with a 25-year maturity from 2005 onwards.
| Issuer: | Xcyte Therapies Inc.
|
| Issue: | Convertible exchangeable preferred stock
|
| Amount: | $26 million (2.6 million shares)
|
| Greenshoe: | $3.9 million (390,000 shares)
|
| Maturity: | Perpetual
|
| Dividend: | 6%
|
| Price: | Par of $10
|
| Yield: | 6%
|
| Initial conversion premium: | 17.5%
|
| Conversion price: | $2.35
|
| Conversion ratio: | 4.2553
|
| Call: | Nov. 6, 2007 onwards
|
| Bookrunner: | Piper Jaffray
|
| Settlement date: | Nov. 3
|
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