By Abigail W. Adams
Portland, Me., Feb. 25 – Exact Sciences Corp. priced an upsized $1 billion of eight-year convertible notes after the market close on Monday at par with a coupon of 0.375% and an initial conversion premium of 27.5%, according to an FWP filing with the Securities and Exchange Commission.
Pricing came in line with talk for a fixed coupon of 0.375% and a fixed initial conversion premium of 27.5%, according to a market source.
BofA Securities Inc. was the bookrunner for the registered offering, which carries an upsized greenshoe of $150 million.
The initial size of the deal was $850 million with 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.
Approximately $150 million of net proceeds will be used to repurchase a portion of the company’s 1% convertible notes due 2025.
Exact Sciences is a Madison, Wis.-based molecular diagnostics company focused on the early detection of colorectal cancer.
| Issuer: | Exact Sciences Corp.
|
| Securities: | Convertible senior notes
|
| Amount: | $1 billion
|
| Greenshoe: | $150 million
|
| Maturity: | March 1, 2028
|
| Bookrunner: | BofA Securities Inc.
|
| Coupon: | 0.375%
|
| Price: | Par
|
| Yield: | 0.375%
|
| Conversion premium: | 27.5%
|
| Conversion price: | $121.84
|
| Conversion rate: | 8.2076
|
| Call options: | None
|
| Put options: | Upon a fundamental change
|
| Pricing date: | Feb. 24
|
| Settlement date: | Feb. 27
|
| Distribution: | Registered
|
| Talk: | Fixed coupon of 0.375% and a fixed initial conversion premium of 27.5%
|
| Stock symbol: | Nasdaq: EXAS
|
| Stock price: | $95.56 at market close Feb. 24
|
| Market capitalization: | $14.14 billion
|
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