By Rebecca Melvin
New York, April 1 – Egalet Corp. priced $60 million of five-year convertibles to yield 5.5% with an initial conversion premium of 15%, according to a syndicate source.
The Rule 144A deal has a $9 million greenshoe and was sold via joint bookrunners JMP Securities and Guggenheim Securities.
The non-callable notes will be convertible only upon the occurrence of specified events.
Proceeds will be used to fund the commercialization of its approved products, to fund research and development related to its product candidates Egalet-001 and Egalet-002 and for working capital and other general corporate purposes.
Wayne, Pa.-based Egalet is a specialty pharmaceutical company focused on developing pain treatments.
| Issuer: | Egalet Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $60 million
|
| Greenshoe: | $9 million
|
| Maturity: | April 1, 2020
|
| Bookrunners: | JMP Securities and Guggenheim Securities
|
| Coupon: | 5.5%
|
| Price: | Par
|
| Yield: | 5.5%
|
| Conversion premium: | 15%
|
| Conversion price: | $14.87
|
| Initial conversion ratio: | 67.2518 shares
|
| Calls: | Non-callable
|
| Pricing date: | April 1
|
| Settlement date: | April 7
|
| Distribution: | Rule 144A
|
| Stock symbol: | Nasdaq: EGLT
|
| Stock reference price: | $12.93 as of close March 31
|
| Market capitalization: | $186.57 million
|
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