Invitae greenshoe ups 2% five-year year convertibles to $350 million

By Rebecca Melvin

New York, Sept. 18 – The underwriters of Invitae Corp.’s 2% convertible senior notes due 2024 exercised their $50 million over-allotment option in full, bringing the deal size up to $300 million.

As previously reported, the company priced an upsized $300 million of the convertibles with a 40% initial conversion premium on Sept. 5. The deal was initially going to be $200 million in size.

J.P. Morgan Securities LLC was bookrunner for the offering, for which there is a $50 million greenshoe. The greenshoe was upsized from an initially talked $30 million size.

The notes are non-callable until Sept. 6, 2022 and then provisionally callable at a 130% price hurdle.

Invitae plans to use the net proceeds to repay $75 million of notes outstanding under its 2018 note purchase agreement and for international expansion, infrastructure investment, working capital and other general corporate purposes. Invitae may also use a portion of the proceeds to acquire or invest in complementary businesses, assets or technologies.

Conversions will be settled in cash, common shares or a combination thereof.

The San Francisco-based company provides genetic testing.

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