By Wendy Van Sickle
Columbus, Ohio, Aug. 1 – Innoviva Inc. priced $175 million of 2.5% convertible senior notes due 2025 after Tuesday’s close with an initial conversion premium of 30%, according to a press release.
The deal came right in the middle of talk for a yield of 2.25% to 2.75% and an initial conversion premium of 27.5% to 32.5%, as reported by a market source earlier on Tuesday.
The Rule 144A deal was first announced late Monday.
Morgan Stanley & Co. LLC and Deutsche Bank Securities Inc. are the bookrunners.
There is a $17.5 million over-allotment option.
Conversion will be settled in cash, common stock or a combination of the two. The initial conversion rate is 57.9240 shares per each $1,000 of notes, equal to a conversion price of $13.28 a share.
The convertibles are non-callable for life.
The transaction is part of the company’s plan to refinance its 9% fixed rate term notes due 2029. Proceeds from the convertibles offering will be used to redeem a portion of the issue on Aug. 15.
The company may also use the funds to purchase common stock via privately negotiated transactions.
Innoviva is a Brisbane, Calif.-based biopharmaceutical company.
| Issuer: | Innoviva Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $175 million
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| Greenshoe: | $17.5 million
|
| Maturity: | Aug. 15, 2025
|
| Bookrunners: | Morgan Stanley & Co. LLC and Deutsche Bank Securities Inc.
|
| Coupon: | 2.5%
|
| Price: | Par of $1,000
|
| Conversion premium: | 30%
|
| Conversion price: | $13.28 a share
|
| Conversion rate: | 57.9240 shares
|
| Call option: | No
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| Pricing date: | Aug. 1
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| Settlement date: | Aug. 15
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| Distribution: | Rule 144A
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| Talk: | 2.25% to 2.75% yield, up 27.5% to 32.5%
|
| Stock symbol: | NYSE: INVA
|
| Stock price: | $13.28 as of Aug. 1 close
|
| Market capitalization: | $1.45 billion
|
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