Sucampo greenshoe increases 3.25% convertibles to $300 million

By Wendy Van Sickle

Columbus, Ohio, Dec. 28 – Sucampo Pharmaceuticals Inc.’s underwriter for its recent offering of five-year convertible bonds exercised their $40 million over-allotment option in full, bringing the total issue size to $300 million, according to an 8-K filing with the Securities and Exchange Commission.

The company priced $260 million of the notes on Dec. 20 with a 3.25% coupon and a 25% initial conversion premium.

The deal was upsized from $225 million with a $35 million greenshoe.

The Rule 144A offering came at the cheap end of talk for a yield of 2.75% to 3.25% and an initial conversion premium of 25% to 30%.

Leerink Partners was the bookrunner.

Conversions will be in class A common stock. The initial conversion rate is 60.2637 shares per each $1,000 of notes, equal to $16.59 per share.

The issue is non-callable for life. Holders can put the issue upon a fundamental change at par plus accrued interest.

The Rockville, Md.-based biopharmaceutical company intends to use the proceeds, along with cash on hand, to repay amounts due under a senior secured credit facility, including all accrued interest and a prepayment premium. Any remaining funds will be used for general corporate purposes.

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