By Stephanie N. Rotondo
Seattle, Oct. 28 – Theravance Biopharma Inc. priced a $200 million underwritten offering of 3.25% convertible senior notes due 2023 at par with a conversion premium of 32.5% on Thursday, the company said in a press release.
Concurrently, the Dublin-based biopharmaceutical company also sold $100.1 million of ordinary shares.
Price talk was for a yield of 3% to 3.5% and an initial conversion premium of 27.5% to 32.5%, according to a market source.
Leerink Partners, Evercore ISI and Piper Jaffray & Co. are the joint bookrunners.
The convertibles sale will include a $30 million over-allotment option. The share offering will have a $15,015,000 greenshoe.
The initial conversion rate is 29.0276 shares per each $1,000 of notes. That equates to an initial conversion price of $34.45 a share.
The notes will be convertible at any time prior to the second business day immediately preceding the maturity date. The notes are not redeemable except upon a tax law change.
Additionally, holders can require the company to repurchase the debt upon certain fundamental changes.
Proceeds will be used for general corporate purposes, which may include research activities, preclinical and clinical development of product candidates, manufacturing, selling and market expenses, capital expenditures, working capital and acquisitions.
| Issuer: | Theravance Biopharma Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $200 million
|
| Greenshoe: | $30 million
|
| Maturity: | Nov. 1, 2023
|
| Bookrunners: | Leerink Partners, Evercore ISI, Piper Jaffray & Co.
|
| Lead manager: | Guggenheim Securities, LLC
|
| Co-managers: | Cantor Fitzgerald & Co., Needham & Co.
|
| Coupon: | 3.25%
|
| Price: | Par of $1,000
|
| Yield: | 3.25%
|
| Conversion premium: | 32.5%
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| Conversion price: | $34.45 a share
|
| Conversion rate: | 29.0276 per each $1,000 of notes
|
| Pricing date: | Oct. 27
|
| Settlement date: | Nov. 2
|
| Talk: | 3% to 3.5%, up 27.5% to 32.5%
|
| Stock symbol: | Nasdaq: TBPH
|
| Stock price: | $26.55 as of Oct. 27 close
|
| Market capitalization: | $1.22 billion
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