| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers S > Headlines for Sarepta Therapeutics, Inc. > News item |
Sarepta greenshoe lifts 1.25% five-year convertibles to $1.15 billion
By Marisa Wong
Los Angeles, Sept. 19 – The initial purchasers of Sarepta Therapeutics Inc.’s recently priced 1.25% convertible notes due Sept. 15, 2027 exercised their $150 million over-allotment option in full on Sept. 14, according to an 8-K filed Monday with the Securities and Exchange Commission.
Sarepta priced a total of $1 billion of five-year convertible notes after the market close on Sept. 13 at par with a coupon of 1.25% and an initial conversion premium of 35%, as previously reported.
Of the total amount, $20 million was issued under a purchase agreement with Michael A. Chambers Living Trust, an entity affiliated with Michael Chambers, a member of the company’s board of directors.
Pricing came at the rich end of talk for a coupon of 1.25% to 1.75% and at the midpoint of talk for 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 were bookrunners for the Rule 144A offering.
The notes are non-callable until Sept. 20, 2025 and then subject to a 130% hurdle.
In connection with the offering, the company entered into capped call transactions with a cap price of $210.32, which represents a premium of 100% over the last reported sales price of stock.
Some of the proceeds will be used to fund the call spread; some will be used to repurchase for cash $150.6 million of the company’s 1.5% convertible notes due 2024 in privately negotiated transactions; some will be used to repay and terminate its credit agreement; and remaining amounts will be used for general corporate purposes.
Sarepta is a Cambridge, Mass.-based biopharmaceutical company focused on rare diseases.
© 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.