By Rebecca Melvin
New York, Oct. 29 – Synergy Pharmaceuticals Inc. priced an upsized $175 million of five-year convertible senior notes in an overnight deal to yield 7.5% with an initial conversion price of $3.11, according to a news release.
The Rule 144A deal has a $25 million greenshoe. The deal was talked at launch for up to $150 million in size with a $22.5 million greenshoe.
Pricing came at fixed price points that were talked at launch. BofA Merrill Lynch was the bookrunner.
The notes are non-callable for life with no puts. Settlement will be in stock.
There is change-of-control protection and dividend protection via a conversion ratio adjustment for any dividends.
Proceeds will be used to fund the clinical development of plecanatide, with any remaining proceeds for working capital and other general corporate purposes.
Synergy is a New York-based biopharmaceutical company focused primarily on the development of drugs to treat gastrointestinal disorders and diseases.
| Issuer: | Synergy Pharmaceuticals Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $175 million, upsized from $150 million
|
| Greenshoe: | $25 million, upsized from $22.5 million
|
| Maturity: | Nov. 1, 2019
|
| Bookrunner: | BofA Merrill Lynch
|
| Coupon: | 7.5%
|
| Price: | Par
|
| Yield: | 7.5%
|
| Conversion price: | $3.11 per share
|
| Conversion ratio: | 321.5434 shares
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Pricing date: | Oct. 29
|
| Settlement date: | Nov. 3
|
| Price talk: | 7.5% coupon, convertible at $3.11
|
| Stock symbol: | Nasdaq: SGYP
|
| Stock price: | $3.11 at close Oct. 28
|
| Distribution: | Rule 144A
|
| Market capitalization: | $308.1 million
|
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