Sarepta Therapeutics talks $375 million seven-year convertible notes to yield 1.5%-2%, up 35%-40%

By Rebecca Melvin

New York, Nov. 7 – Sarepta Therapeutics Inc. plans to price $375 million of seven-year convertible notes after the market close on Wednesday with a coupon of 1.5% to 2% and an initial conversion premium of 35% to 40%, according to a market source.

The Rule 144A offering, which was announced after the market close on Tuesday, has a $75 million greenshoe and was being priced by J.P. Morgan Securities LLC and Goldman Sachs & Co. as active bookrunners and Credit Suisse Securities (USA) LLC as passive bookrunner.

The senior notes are non-callable for life with no puts. They have takeover protection.

In connection with the pricing of the notes, Sarepta plans to enter into capped call transactions with initial purchasers of the notes and their affiliates.

Proceeds will be used to pay the net cost of the capped call transactions and to strengthen its balance sheet, to improve its capital structure and to fund general corporate purposes.

Cambridge, Mass.-based Sarepta is a biopharmaceutical company focused on genetic medicines to treat rare neuromuscular diseases.

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