BioMarin greenshoe lifts 0.599% convertibles due 2024 to $495 million

By Wendy Van Sickle

Columbus, Ohio, Aug. 23 – Underwriters for BioMarin Pharmaceutical Inc.’s 0.599% senior subordinated convertible notes due 2024 fully exercised their $45 million over-allotment option on Wednesday, increasing the total deal size to $495 million, according to a press release.

As previously reported, the company priced $450 million of the convertibles at 98% of par on Aug. 7.

The deal came with an initial conversion premium of 40%.

BofA Merrill Lynch was the bookrunning manager. J.P. Morgan Securities LLC and Goldman Sachs & Co. were the joint bookrunners.

Conversions will be settled with common stock, though cash may also be distributed in the case of fractional shares.

Proceeds from the offering will be used to repay, repurchase or settle in cash some or all of the company’s 0.75% senior subordinated convertible notes due October 2018, although no such deal was done concurrently with the offering. Any remaining proceeds will be used for general corporate purposes, including clinical trials of product candidates and the expansion of manufacturing capacity, particularly with respect to the manufacturing capability for BioMarin’s gene therapy program.

BioMarin is a San Rafael, Calif.-based biopharmaceutical company.

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