By Rebecca Melvin
New York, July 12 - Merrimack Pharmaceuticals Inc. priced an upsized $125 million of seven-year convertible senior notes after the market close Thursday at par to yield 4.5% with an initial conversion premium of 25%, according to a term sheet.
Merrimack also priced a downsized $25 million of common stock, or 5 million shares at $5.00 per share.
The registered, off-the-shelf offering of notes was initially talked at $75 million in size, and the stock offering was initially talked at $50 million.
Pricing of the notes came at the midpoint of talked terms, which were for a 4.25% to 4.75% coupon and 22.5% to 27.5% premium.
The $18.75 million greenshoe of notes was upsized from $11.25 million. The stock offering has a $3.75 million greenshoe, which was downsized from $7.5 million.
Joint bookrunners of the notes offering were J.P. Morgan Securities LLC and BofA Merrill Lynch.
The notes are non-callable for life with no puts. There is takeover and dividend protection.
Proceeds from both offerings will be used to fund research and clinical development and seek marketing approval for MM-398 for the treatment of metastatic pancreatic cancer, to fund additional clinical-stage product candidates and for general corporate purposes.
Merrimack is a Cambridge, Mass.-based biopharmaceutical company.
| Issuer: | Merrimack Pharmaceuticals Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $125 million, upsized from $75 million
|
| Greenshoe: | $18.75 million, upsized from $11.25 million
|
| Maturity: | July 15, 2020
|
| Concurrent stock offering: | 5 million common shares, at $5.00 per share
|
| Concurrent stock greenshoe: | $3.75 million, downsized from $7.5 million
|
| Bookrunners: | J.P. Morgan Securities LLC and BofA Merrill Lynch
|
| Co-managers: | Cowen & Co. LLC, Jefferies & Co.
|
| Coupon: | 4.5%
|
| Price: | Par of $1,000
|
| Yield: | 4.5%
|
| Conversion premium: | 25%
|
| Conversion price: | $6.25
|
| Conversion ratio: | 160.0000
|
| Call option: | Non-callable
|
| Put option: | No puts
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Price talk: | 4.25%-4.75%, up 22.5%-27.5%
|
| Pricing date: | July 11
|
| Settlement date: | July 17
|
| Stock symbol: | Nasdaq: MACK
|
| Stock reference price: | $5.03 at close July 11
|
| Distribution: | Registered, off the shelf
|
| Market capitalization: | $483.3 million
|
© 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.
