Amphastar greenshoe increases 2% convertibles to $345 million

By Wendy Van Sickle

Columbus, Ohio, Sept. 15 – Underwriters for Amphastar Pharmaceuticals Inc.’s 2% long five-year convertible senior notes exercised their $45 million over-allotment option to increase the deal size to $345 million, according to an 8-K filing with the Securities and Exchange Commission.

The company priced the initial $300 million of convertibles after the market close on Sept. 12 at par with an initial conversion premium of 35%, as previously reported.

The notes priced at the cheap end of price talk for a coupon of 1.5% to 2% and at the rich end of talk for an initial conversion premium of 30% to 35%.

Jefferies LLC (lead left), BofA Securities Inc., Wells Fargo Securities LLC and J.P. Morgan Securities LLC were the bookrunners for the Rule 144A offering.

The notes are non-callable until Sept. 20, 2026 and then subject to a 130% premium.

They are putable upon a fundamental change.

The notes will be settled in cash up to the principal amount with any excess to be settled in cash, shares or a combination of both.

Net proceeds will be $333.9 million with the greenshoe.

About $200 million of net proceeds will be used to repay borrowings under the company’s term loan, $50 million will be used to repurchase common stock in privately negotiated transactions with remaining amounts to be used for general corporate purposes.

Amphastar is a Rancho Cucamonga, Calif.-based specialty pharmaceutical company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.