Exact Sciences talks $850 million 0.375% eight-year convertible notes at par, up 27.5%

By Abigail W. Adams

Portland, Me., Feb. 24 – Exact Sciences Corp. plans to price $850 million of eight-year convertible notes after the market close on Monday with price talk for an offer price of par, a fixed coupon of 0.375% and a fixed initial conversion premium of 27.5%, according to a market source.

BofA Securities Inc. is the bookrunner for the registered offering, which carries a greenshoe of $127.5 million.

The notes are non-callable. They are putable upon a fundamental change.

The notes are contingently convertible until Sept. 1, 2027.

Conversion will be settled in cash, shares or a combination of both at the company’s option.

There is dividend protection.

Proceeds will be used for general corporate purposes, including the repayment of debt, for working capital and for possible acquisitions.

Exact Sciences is a Madison, Wis.-based molecular diagnostics company focused on the early detection of colorectal cancer.

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