By Abigail W. Adams
Portland, Me., Dec. 14 – Medicines Co. priced $150 million of five-year convertible notes after the market close on Thursday at par with a coupon of 3.5% and an initial conversion price of 27.5%, according to a company news release.
Pricing came at the cheap end of talk for a coupon of 3% to 3.5% and at the midpoint of talk for an initial conversion premium of 25% to 30%, according to a market source.
J.P. Morgan Securities LLC is the bookrunner for the Rule 144A offering, which carries a greenshoe of $22.5 million.
The notes are contingently convertible until Oct. 15, 2023. They are non-callable.
The notes will be settled in cash, shares or a combination of both at the company’s option.
There is dividend and takeover protection.
Sarissa Capital Management LP, an affiliate of board chairman Alexander J. Denner, intends to purchase $20 million of the notes, according to a company press release.
Proceeds are expected to be $144.9 million, or $166.8 million if the greenshoe is exercised in full.
Proceeds will be used to fund the development of Inclisiran, the company’s cholesterol medication, and for general corporate purposes.
Medicines is a Parsippany, N.J.-based biopharmaceutical company.
| Issuer: | Medicines Co.
|
| Securities: | Convertible senior notes
|
| Amount: | $150 million
|
| Greenshoe: | $22.5 million
|
| Maturity: | Jan. 15, 2024
|
| Bookrunner: | J.P. Morgan Securities LLC
|
| Coupon: | 3.5%
|
| Price: | Par
|
| Yield: | 3.5%
|
| Conversion premium: | 27.5%
|
| Conversion price: | $25.19
|
| Conversion rate: | 39.692
|
| Call options: | None
|
| Put options: | None
|
| Pricing date: | Dec. 13
|
| Settlement date: | Dec. 18
|
| Talk: | Coupon of 3% to 3.5% and an initial conversion premium of 25% to 30%
|
| Stock symbol: | Nasdaq: MDCO
|
| Stock price: | $19.76 at market close Dec. 13
|
| Market capitalization: | $1.46 billion
|
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