Solazyme to price $100 million five-year convertibles to yield 5.5%-6%, up 20%-25%

By Rebecca Melvin

New York, Jan. 17 - Solazyme Inc. planned to price $100 million of five-year convertible senior subordinated notes after the market close Thursday that were talked to yield 5.5% to 6%, with an initial conversion premium of 20% to 25%, according to a market source.

The Rule 144A offering has a $15 million greenshoe and was being sold via bookrunner Goldman Sachs & Co.

The bonds are convertible at any time, with holders to receive 83.33 shares per $1,000 upon an early conversion prior to Nov. 1, 2016 at the holder's option.

The convertibles are non-callable with no investor puts. There is full dividend and takeover protection.

Proceeds will be used to fund project-related costs and capital expenditures and for general corporate purpose.

San Francisco-based Solazyme uses plant-based sugars to produce oils for use in the chemicals and fuels industries, as well as for the nutrition, skin and personal care markets.

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