Gossamer Bio talks $175 million seven-year convertible notes with a coupon of 5%, up 22.5%

By Abigail W. Adams

Portland, Me., May 18 – Gossamer Bio Inc. plans to price $175 million of seven-year convertible notes after the market close on Monday at par with a fixed coupon of 5% and a fixed initial conversion premium of 22.5%, according to a market source.

BofA Securities Inc, SVB Leerink LLC and Piper Sandler Co. are joint bookrunners for the registered offering, which carries a greenshoe of $26.25 million.

The notes are non-callable until June 6, 2024 and then subject to a 130% premium. They are putable upon a fundamental change.

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

The company also plans to price a secondary offering of up to $18.75 million with talk for a reoffer range of $13.25 to $13.75.

Proceeds will be used to fund the research and development of product candidates, for working capital and for general corporate purposes.

Gossamer is a San Diego-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.