By Rebecca Melvin
New York, Sept. 12 - Sequenom Inc. priced an upsized $110 million of five-year convertible bonds after the market close on Tuesday at par to yield 5% with an initial conversion premium of 27.5%, according to a news release.
The Rule 144A deal was initially talked at $100 million in size.
Pricing came at the midpoint of talk, which was for a yield of 4.75% to 5.25% and an initial conversion premium of 25% to 30%.
The deal, which was sold via bookrunners J.P. Morgan Securities LLC and Jefferies & Co., has a $20 million greenshoe.
Proceeds of the offering will be used to fund the commercialization of a laboratory-developed test, as well as for other general corporate purposes, including research and development, capital expenditures, working capital and general administrative expenses.
The notes are non-callable for three years and then provisionally callable at a price hurdle of 140%. There are no puts. There is also takeover and dividend protection.
If Sequenom calls the notes, a make-whole fundamental change will be deemed to have occurred and the conversion rate for holders who convert may be increased.
Upon a fundamental change, holders may require Sequenom to repurchase some or all of their convertibles at par plus interest.
San Diego-based Sequenom provides genetic analysis products used in biomedical research, molecular medicine and agricultural applications.
| Issuer: | Sequenom Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $110 million, upsized from $100 million
|
| Greenshoe: | $20 million
|
| Maturity: | Oct. 1, 2017
|
| Bookrunners: | J.P. Morgan Securities LLC, Jefferies & Co.
|
| Coupon: | 5%
|
| Price: | Par, $1,000
|
| Yield: | 5%
|
| Initial conversion premium: | 27.5%
|
| Initial conversion price: | $4.63
|
| Conversion ratio: | 216.0644 shares
|
| Calls: | Non-callable until Oct. 1, 2015, then provisionally callable at 140% price hurdle
|
| Puts: | No puts
|
| Distribution: | Rule 144A
|
| Price talk: | 4.75%-5.25%, up 25%-30%
|
| Pricing date: | Sept. 11
|
| Settlement date: | Sept. 17
|
| Stock symbol: | Nasdaq: SQNM
|
| Stock price: | $3.63, as of close Sept. 11
|
| Market capitalization: | $430.5 million
|
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