Inotiv talks $110 million of six-year convertible notes to yield 3%-3.5%, up 30%-35%

By Abigail W. Adams

Portland, Me., Sept. 22 – Inotiv Inc. plans to price $110 million of six-year convertible notes after the market close on Wednesday with price talk for a coupon of 3% to 3.5% and an initial conversion premium of 30% to 35%, according to a market source.

Jefferies LLC is bookrunner for the Rule 144A offering, which carries a greenshoe of $16.5 million.

The convertible notes will be guaranteed by subsidiary BAS Evansville, Inc.

The notes are non-callable until Oct. 15, 2024 and then subject to a 130% hurdle.

However, the notes are callable at a redemption price of 101 if the company has not completed its acquisition of Envigo RMS Holding Corp. by Oct. 3, 2022.

The convertibles are putable upon a fundamental change.

Proceeds, together with proceeds from a new senior secured term loan facility, will be used to fund the acquisition of Envigo.

Inotiv is a West Lafayette, Ind.-based biotechnology company.

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