By Abigail W. Adams
Portland, Me., May 12 – BioMarin Pharmaceutical Inc. priced an upsized $550 million seven-year convertible notes after the market close on Monday at par at the midpoint of talk with a coupon of 1.25% and an initial conversion premium of 42.5%, according to a company news release.
Price talk was for a coupon of 1% to 1.5% and an initial conversion premium of 40% to 45%, according to a market source.
BofA Securities Inc. was the bookrunner for the Rule 144A offering, which carries a greenshoe of $50 million.
The initial size of the offering was $500 million.
The notes are non-callable until May 20, 2024 and then subject to a 130% hurdle above the conversion price with a make-whole.
The notes are putable upon a fundamental change.
There is dividend protection.
Net proceeds are expected to be $536.9 million or $585.8 million if the greenshoe is exercised in full.
The company intends to use up to $50 million of net proceeds to repurchase shares of common stock either in privately negotiated transactions with purchasers of the notes or following the offering in privately negotiated or other transactions.
The majority of proceeds will be used to repurchase or settle in cash its 1.5% convertible notes due 2020.
BioMarin is a San Rafael, Calif.-based biotechnology company.
| Issuer: | BioMarin Pharmaceutical Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $550 million
|
| Greenshoe: | $50 million
|
| Maturity: | May 15, 2027
|
| Bookrunner: | BofA Securities Inc.
|
| Coupon: | 1.25%
|
| Price: | Par
|
| Yield: | 1.25%
|
| Conversion premium: | 42.5%
|
| Conversion price: | $137.47
|
| Conversion rate: | 7.2743
|
| Call options: | Non-callable until May 20, 2024 and then subject to a 130% hurdle above the conversion price
|
| Put options: | Upon a fundamental change
|
| Pricing date: | May 11
|
| Settlement date: | May 14
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 1% to 1.5% and initial conversion premium of 40% to 45%
|
| Stock symbol: | Nasdaq: BMRN
|
| Stock price: | $96.47 at market close May 11
|
| Market capitalization: | $17.45 billion
|
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