By Wendy Van Sickle
Columbus, Ohio, May 10 – Dermira Inc. priced $250 million of 3% convertible senior notes due 2022 with an initial conversion premium of 30%, the company said in a press release late Wednesday evening.
The Rule 144A deal priced in the middle of talk for a 2.75% to 3.25% yield and at the rich end of talk for an initial conversion premium of 25% to 30%.
Leerink Partners and Cowen & Co. are the joint bookrunners.
There is a $37.5 million over-allotment option.
The notes are convertible at the holder’s option into common stock. The conversion price is $35.45 per share, or 28.2079 shares per each $1,000 of notes.
The issue is non-callable for life.
Holders can put the issue in the event of a fundamental change.
Proceeds will be used for working capital, capital expenditures and other general corporate purposes. The Menlo Park, Calif.-based skin condition drug developer may also use some of the funds to expand its business by in-licensing or acquiring product candidates, technologies, compounds, other assets, commercial products or complementary businesses, though there are no current plans to do so.
| Issuer: | Dermira Inc.
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| Securities: | Convertible senior notes
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| Amount: | $250 million
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| Greenshoe: | $37.5 million
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| Maturity: | May 15, 2022
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| Bookrunners: | Leerink Partners and Cowen & Co.
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| Coupon: | 3%
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| Call options: | None
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| Put option: | Upon a fundamental change at par plus accrued interest
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| Conversion premium: | 30%
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| Conversion price: | $35.45
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| Conversion rate: | 28.2079
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| Pricing date: | May 10
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| Settlement date: | May 16
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| Distribution: | Rule 144A
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| Talk: | 2.75% to 3.25% yield, up 25% to 30%
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| Stock symbol: | NASDAQ: DERM
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| Stock price: | $27.27 as of May 10 close
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| Market capitalization: | $1.15 billion
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