By Rebecca Melvin
New York, Dec. 9 – Basilea Pharmaceutica Ltd. priced CHF 200 million of convertible senior bonds due 2022 at par of CHF 5,000 on Wednesday to yield 2.75% with an initial conversion premium of 30%, according to a news release.
The Regulation S deal was talked at CHF 175 million to CHF 200 million in size, and pricing came at the rich end of talked terms, which were for a 2.75% to 3.5% coupon and a 25% to 30% initial conversion premium over the volume-weighted average price of shares on the Six Swiss exchange between launch and pricing.
Joint bookrunners of the deal were JPMorgan and UBS.
The bonds will be provisionally allocated to investors participating in the Wednesday book, but subject to a clawback, or pro-rata reduction, based on subscription rights exercised by existing shareholders.
Existing shareholders will be able to subscribe at the rate of one bond for every 309 shares from Dec. 14 to Dec. 18.
Proceeds will be used to participate in a U.S. phase 3 development program for ceftobiprole, to support and expand commercialization of Cresemba and Zeviera, to support post-approval pediatric studies approved by the European Medicines Agency for isavuconazole and ceftobrprole in Europe, to advance its oncology product candidates, and for working capital and other general corporate purposes.
Basilea plans to apply to list the bonds for trading on the SIX Swiss Exchange. The deal is expected to settle on Dec. 23.
The company also intends to withdraw its previously announced F-1 public offering of common shares in the United States in the form of American Depository Shares.
Basilea is a Basel, Switzerland-based biopharmaceutical company focused on bacterial and fungal infections and cancers that are resistant to current treatment options.
| Issuer: | Basilea Pharmaceutica Ltd.
|
| Issue: | Convertible senior bonds
|
| Amount: | CHF 200 million
|
| Maturity: | 2022
|
| Bookrunners: | JPMorgan, UBS
|
| Coupon: | 2.75%
|
| Price: | Par, CHF 5,000
|
| Yield: | 2.75%
|
| Conversion premium: | 30%
|
| Net share settlement: | Yes
|
| Price talk: | 2.75%-3.5%, up 25%-30%
|
| Pricing date: | Dec. 9
|
| Settlement date: | Dec. 23
|
| Stock symbol: | Swiss: BSLN
|
| Stock reference price: | CHF 95.85, as of close Dec. 9
|
| Distribution: | Regulation S
|
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