XOMA greenshoe lifts 8.625% cumulative preferreds to $24.6 million

By Wendy Van Sickle

Columbus, Ohio, Dec. 21 – Underwriters for XOMA Corp.’s recently priced $22 million offering of 8.625% $25-par series A cumulative perpetual preferred stock fully exercised their greenshoe for $2.6 million, or 104,000 shares, according to a press release.

This brings the total deal size to $24.6 million, or 984,000 shares. The company priced $22 million, or 880,000 shares, of the preferred stock on Dec. 10, as previously reported.

B. Riley Securities, Inc., Ladenburg Thalmann & Co. Inc., National Securities Corp. and William Blair & Co. LLC are the bookrunners.

Dividends are payable on Jan. 15, April 15, July 15 and Oct. 15, starting on April 15, 2021.

The preferreds are redeemable at $26.00 after one year, $25.75 after two years, $25.50 after three years, $25.25 after four years and $25.00 after five years. The preferreds are also redeemable within 90 days after a delisting event at par or 120 days after a change of control at par.

XOMA plans to use the proceeds to fund its segregated dividend account and the remaining net proceeds for general corporate purposes, including funding future acquisitions of milestone and royalty rights associated with drug development programs with third-party funding.

The company plans to list the preferreds on the Nasdaq under the symbol “XOMAP.”

XOMA is an Emeryville, Calif.-based biotech company.

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