By Rebecca Melvin
New York, Oct. 11 – Karyopharm Therapeutics Inc. priced $150 million of seven-year convertible senior notes at par on Wednesday to yield 3% and with a 27.5% initial conversion premium, according to a syndicate source.
Pricing came at the cheap end of 2.5% to 3% coupon talk and at the midpoint of 25% to 30% initial conversion premium talk.
The notes have an over-allotment option for up to an additional $22.5 million aggregate principal amount of notes. They are non-callable until Oct. 15, 2022.
J.P. Morgan Securities LLC and Leerink were joint bookrunners of the Rule 144A deal.
The proceeds will be used to support a potential commercial launch of selinexor and to support further clinical development of selinexor and other pipeline drug candidates, eltanexor and KPT-9274; and for working capital and other general corporate purposes.
Karyopharm is a clinical-stage pharmaceutical company based in Newton, Mass.
| Issuer: | Karyopharm Therapeutics Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $150 million
|
| Greenshoe: | $22.5 million
|
| Maturity: | Oct. 15, 2025
|
| Bookrunners: | J.P. Morgan Securities LLC and Leerink
|
| Coupon: | 3%
|
| Price: | Par
|
| Yield: | 3%
|
| Conversion premium: | 27.5%
|
| Call options: | Non-callable until Oct. 15, 2022
|
| Pricing date: | Oct. 9
|
| Settlement date: | Oct. 15
|
| Distribution: | Rule 144A
|
| Talk: | 2.5%-3%, up 25%-30%
|
| Stock symbol: | Nasdaq: KPTI
|
| Stock price: | $12.435 at market close Oct. 10
|
| Market capitalization: | $753.1 million
|
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