Sarepta talks $1 billion five-year convertible notes to yield 1.25%-1.75%, up 32.5%-37.5%

By Abigail W. Adams

Portland, Me., Sept. 12 – Sarepta Therapeutics Inc. plans to price $1 billion of five-year convertible notes after the market close on Tuesday with price talk for a coupon of 1.25% to 1.75% and an initial conversion premium of 32.5% to 37.5%, according to a market source.

J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC are bookrunners for the Rule 144A offering, which carries a greenshoe of $150 million.

The notes are non-callable until Sept. 20, 2025 and then subject to a 130% hurdle.

In connection with the offering, the company will enter into capped call transactions.

Proceeds will be used to fund the call spread, to repurchase for cash a portion of the company’s 1.5% convertible notes due 2024 in privately negotiated transactions, to repay and terminate its credit agreement and for general corporate purposes.

Sarepta is a Cambridge, Mass.-based biopharmaceutical company focused on rare diseases.

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