Exact Sciences greenshoe ups 0.375% convertibles to $747.5 million

By Wendy Van Sickle

Columbus, Ohio, March 8 – Underwriters for Exact Sciences Corp.’s 0.375% convertible senior notes due March 15, 2027 fully exercised their $97.5 million greenshoe, lifting the total deal size to $747.5 million, according to an 8-K filed Friday with the Securities and Exchange Commission.

The company priced an upsized $650 million of the convertibles senior notes at 99.5 after the market close on Tuesday with an initial conversion premium of 27.5%, as previously reported.

The yield to maturity was 0.439%.

Pricing came in line with price talk for a coupon of 0.375%, a reoffer price of 99.5 and an initial conversion premium of 27.5%, according to a market source.

BofA Merrill Lynch was bookrunner for the offering.

The initial size of the offering was $600 million with a greenshoe of $90 million.

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

Proceeds will be used to exchange $493.4 million of the outstanding 1% convertible notes due 2025 in cash and aggregate amount of 2.16 million shares of common stock in individually negotiated transactions.

Proceeds may also be used to exchange or induce conversion of the 1% convertible notes due 2025.

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

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