By Abigail W. Adams
Portland, Me., May 11 – Dynavax Technologies Corp. priced $200 million of five-year convertible notes after the market close on Monday at par with a coupon of 2.5% and an initial conversion premium of 32.5%, according to a company news release.
Pricing came at the cheap end of talk for a coupon of 2% to 2.5% and in the middle of talk for an initial conversion premium of 30% to 35%, according to a market source.
Goldman Sachs & Co. LLC was the bookrunner for the Rule 144A offering, which carries a greenshoe of $30 million.
The notes are non-callable until May 20, 2024 and then subject to a 130% hurdle.
They are putable upon a fundamental change.
In connection with the offering, the company entered into capped call transactions with a cap price of $15.80, which represents a premium of 100% over the last reported sales price of stock.
Net proceeds are expected to be $195.1 million or will be $224.4 million if the greenshoe is exercised in full.
Approximately $24.2 million of net proceeds, or $27.8 million if the greenshoe is exercised in full, will be used to cover the cost of the call spread and $190.2 million will be used to repay in full the company’s term loan.
Dynavax is an Emeryville, Calif.-based biotechnology company.
| Issuer: | Dynavax Technologies Corp.
|
| Securities: | Convertible senior notes
|
| Amount: | $200 million
|
| Greenshoe: | $30 million
|
| Maturity: | May 15, 2026
|
| Bookrunner: | Goldman Sachs & Co. LLC
|
| Coupon: | 2.5%
|
| Price: | Par
|
| Yield: | 2.5%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $10.47
|
| Conversion rate: | 95.5338
|
| Call options: | Non-callable until May 20, 2024 and then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | May 10
|
| Settlement date: | May 13
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 2% to 2.5% and initial conversion premium of 30% to 35%
|
| Stock symbol: | Nasdaq: DVAX
|
| Stock price: | $7.90 at market close May 10
|
| Market capitalization: | $905.05 million
|
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