Chicago, Aug. 23 – Assertio Holdings Inc. priced a $60 million offering of 6.5% five-year convertible senior notes at par with a 12.5% initial conversion premium after the market close on Monday, according to a press release.
Pricing came at the cheap end of talk, initially at 5.5% to 6.5% for the coupon and for an initial conversion premium of 12.5% to 17.5%.
SVB Securities is bookrunner for the Rule 144A offering, which carries a greenshoe of $10 million.
The notes are non-callable until Sept. 8, 2025 and then subject to a 130% hurdle.
The notes will be settled in cash, shares or a combination of both at the company’s option.
Proceeds will be used to repurchase or redeem the company’s 13% senior secured notes due 2024 and for general corporate purposes.
Assertio is a Lake Forest, Ill.-based specialty pharmaceutical company.
| Issuer: | Assertio Holdings, Inc.
|
| Amount: | $60 million
|
| Greenshoe: | $10 million
|
| Issue: | Convertible senior notes
|
| Maturity: | Sept. 1, 2027
|
| Bookrunner: | SVB Securities
|
| Coupon: | 6.5%
|
| Price: | Par
|
| Yield: | 6.5%
|
| Conversion premium: | 12.5%
|
| Conversion price: | $4.09
|
| Conversion rate: | 244.2003
|
| Call features: | Non-callable until Sept. 8, 2025, then subject to 130% hurdle
|
| Change of control: | At par
|
| Trade date: | Aug. 23
|
| Settlement date: | Aug. 25
|
| Distribution: | Rule 144A
|
| Price talk: | 5.5% to 6.5% coupon and 12.5% to 17.5% initial conversion premium
|
| Stock symbol: | Nasdaq: ASRT
|
| Stock price: | $3.64 at market close on Aug. 22
|
| Market capitalization: | $125.26 million
|
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