Repligen prices $250 million convertibles; Gol upsizes; Suzlon defaults on $172 million

Chicago, July 17 – After a quiet week, the convertible primary market saw some life on Wednesday.

Repligen Corp. priced its $250 million five-year convertible notes.

The calendar saw some rebuilding earlier in the week, adding GOL Linhas Aereas Inteligentes SA which was upsized and priced late on Wednesday.

Senseonics Holdings Inc. also joined the forward calendar.

Meanwhile, a name surfaced from the past as Suzlon Energy Ltd. reported a $172 million default.

Repligen prices

As expected, Repligen priced $250 million 0.375% five-year convertibles with a 32.5% initial conversion premium.

Price talk was for a coupon of 0.375% to 0.875% and an initial conversion premium of 27.5% to 32.5%.

Underwriters were marketing the deal with assumptions of 350 basis points over Libor and a 36% vol., according to a market source.

The convertible notes offering priced concurrently with a common stock offering, pointed to by sources as a plus for the convertible notes.

The common stock offering was expected to be $100 million, and instead the company priced $120 million with an over-allotment option for 30 days to purchase an additional 207,000 shares.

Gol Linhas upsizes

Late on Wednesday, Gol Linhas priced its add-on offering of $80 million 3.75% notes due 2024.

The add-on offering was upsized from $55 million.

The tap is to be consolidated with the issuer’s previous notes, initially issued on March 26 and then additional notes were added April 17 when the greenshoe was exercised.

Calendar rebuilds

There was a dearth of new offerings in the primary market for nearly a week, while the calendar slowly started to rebuild on Monday.

Senseonics joined the calendar earlier in the week with an expected $80 million offering of 5.25% six-year convertible notes.

Suzlon Energy defaults

Suzlon Energy, a name not seen by Prospect News since 2016, found itself back in convertible news on Wednesday.

Not for the first time, the company has failed to make a payment on a convertible note.

According to a company notice, Suzlon missed paying $172 million principal amount for notes due July 16.

The $172 million due pertained to the $546.92 million of convertible notes issued in 2014; the entire purpose of those notes was to restructure four series of prior notes.

The issue had a step-up coupon which started at 3.25% for the first 18 months and then moved up to 5.75% for the remaining 42 months.

At the time, the company was “confident of maintaining sustainable growth in the next three years.”

Suzlon stock dropped over 5% on Wednesday.

Mentioned in this article:

GOL Linhas Aereas Inteligentes SA NYSE: GOL

Repligen Corp. Nasdaq: RGEN

Senseonics Holdings Inc. NYSE: SENS

Suzlon Energy Ltd. NSE: SUZLON

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