Cerevel Therapeutics tightens talk on $250 million five-year convertibles to 2.5%-2.75%, up 32.5%

By Abigail W. Adams

Portland, Me., Aug. 10 – Cerevel Therapeutics Holdings Inc. tightened talk on its $250 million offering of five-year convertible notes, which is slated to price post-close Thursday, to a coupon of 2.5% to 2.75% and an initial conversion premium of 32.5%, according to a market source.

Initial talk was for a coupon of 2.75% to 3.25% and an initial conversion premium of 27.5% to 32.5%.

Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, Jefferies LLC and Evercore are bookrunners for the Rule 144A offering, which carries a greenshoe of $37.5 million.

The notes are non-callable until Aug. 20, 2025 and then subject to a 130% hurdle.

They will be settled in cash, shares or a combination of both at the company’s option.

Concurrently, Cerevel is pricing a secondary offering of $250 million shares of common stock, which carries a greenshoe of $37.5 million.

Net proceeds will be used to support the development of the products in its pipeline and for general corporate purposes.

Cerevel is a Cambridge, Mass.-based biopharmaceutical company focused on neurological diseases.

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