Kadmon talks $150 million six-year convertibles to yield 3.25%-3.75%, up 25%-30%

By Abigail W. Adams

Portland, Me., Feb. 10 – Kadmon Holdings Inc. plans to price $150 million of six-year convertible notes prior to the market open on Thursday with price talk for a coupon of 3.25% to 3.75% and an initial conversion premium of 25% to 30%, according to a market source.

Cantor Fitzgerald & Co. is the bookrunner for the Rule 144A offering, which carries a greenshoe of $30 million.

The notes are non-callable for three years and then subject to a 130% hurdle.

They will be settled in cash, shares or a combination of both at the company’s option.

There is dividend and takeover protection.

In connection with the offering, the company will enter into capped call transactions.

Proceeds will be used to cover the cost of the call spread and for general corporate purposes.

Kadmon is a New York-based biopharmaceutical company.

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