Kadmon greenshoe exercised, lifts 3.625% convertibles to $240 million

By Taylor Fox

New York, Feb. 16 – Underwriters for Kadmon Holdings, Inc.’s 3.625% convertible senior notes due 2027 fully exercised the $40 million greenshoe, lifting the total deal size to $240 million, according to a news release.

As previously reported, Kadmon originally sold an upsized $200 million of the convertibles at par on Thursday with an initial conversion premium of 30%.

The issuer originally sought to sell $150 million of the notes with a coupon of 3.25% to 3.75% and an initial conversion premium of 25% to 30%, according to a market source. The greenshoe was upsized from $30 million.

The notes are non-callable until Feb. 20, 2024 and then subject to a 130% hurdle.

They are putable upon a fundamental change. There is dividend protection.

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

Proceeds will be used to cover the cost of the call spread and for the research and development and commercialization of drug candidates.

Kadmon is a New York-based biopharmaceutical company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.