New Issue: BioMarin prices upsized $680 million of convertible bonds in two tranches

By Rebecca Melvin

New York, Oct. 9 -BioMarin Pharmaceutical Inc. priced an upsized $680 million of convertible senior subordinated notes at par in two equally divided tranches of five-year and seven-year paper, with pricing accomplished at the rich end of tightened talk, according to prospectus.

There is a greenshoe for up to $70 million of additional bonds. Initially the base deal was expected to be $600 million in size.

The five-year tranche for $340 million has a 0.75% coupon, which was fixed during marketing from an initially talked 0.75% to 1.25% coupon.

The seven-year tranche for $340 million has a 1.5% coupon, which was fixed during marketing from an initially talked 1.5% to 2% coupon.

Both tranches have a 40% initial conversion premium, which was the rich end of 37.5% to 40% talk, tightened during marketing from 32.5% to 37.5%.

BofA Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the joint bookrunners of the registered offering.

The notes are non-callable for life with no puts. They have contingent conversion if shares exceed 130% of the conversion price, and there is net share settlement, as well as takeover and dividend protection.

About $27 million of the proceeds will be used to cover the cost of capped call transactions pertaining to about 50% of the notes.

Remaining proceeds will be used for general corporate purposes, including working capital and research and development.

The strike on the capped call transactions is $121.05, which raises the initial conversion premium from the issuer's perspective to 80%.

BioMarin is a Novato, Calif.-based biopharmaceutical company focused on therapeutic enzyme products.

© 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.