Leerink Partners acts as initial purchaser of notes
By Stephanie N. Rotondo
Phoenix, July 28 – Bacterin International Holdings, Inc. released fresh details on its $65 million private placement of 6% convertible senior unsecured notes due 2021 in an 8-K filed with the Securities and Exchange Commission on Tuesday.
The deal priced Monday.
Of the $65 million, a total of $52 million was set aside for certain funds advised by OrbiMed Advisors LLC, an existing stockholder.
Leerink Partners LLC was the sole initial purchaser.
The Rule 144A deal has a $9.75 million 30-day over-allotment option, which will be offered to the initial purchaser.
Holders may convert their notes into common shares at an initial conversion rate of 257.5163 shares per $1,000 principal amount, representing an initial conversion price of about $3.88 per share, a 22.5% premium to the closing share price of $3.17 on Monday.
Proceeds will be used for the cash portion of the purchase price for Bacterin’s acquisition of X-spine Systems, Inc. and for general corporate purposes.
Belgrade, Mont.-based Bacterin develops, manufactures and markets biologics products to optimize the growth factors in human allografts to promote bone growth, subchondral repair and dermal growth.
| Issuer: | Bacterin International Holdings, Inc.
|
| Securities: | Convertible senior unsecured notes
|
| Amount: | $65 million
|
| Greenshoe: | $9.75 million
|
| Maturity: | July 15, 2021
|
| Initial purchaser: | Leerink Partners LLC
|
| Investor: | OrbiMed Advisors LLC (for $52 million)
|
| Coupon: | 6%, payable on April 15, 2016, then semiannually on Jan. 15 and July 15 of each year
|
| Conversion premium: | 22.5%
|
| Conversion price: | $3.88 (approximate)
|
| Conversion ratio: | 257.5163 shares per $1,000 principal amount
|
| Warrants: | No
|
| Distribution: | Rule 144A
|
| Pricing date: | July 27
|
| Stock symbol: | NYSE: BONE
|
| Stock price: | $3.17 at close July 27
|
| Market capitalization: | $27.95 million
|
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