Company says proceeds will fund cash portion of X-spine Systems buy
By Toni Weeks
San Luis Obispo, Calif., July 27 – Bacterin International Holdings, Inc. said it priced $65 million principal amount of unsubordinated 6% convertible senior unsecured notes due 2021, according to a press release.
The Rule 144A deal has a 30-day over-allotment option for an additional $9.75 million of notes, which was offered to the initial purchaser.
Holders may convert their notes into common shares at an initial conversion rate of 257.5163 shares per $1,000 principal amount, representing an initial conversion price of about $3.88 per share, a 21.25% premium to the closing share price of $3.20 on July 26.
Proceeds will be used for the cash portion of the purchase price for Bacterin’s acquisition of X-spine Systems, Inc. and general corporate purposes.
Belgrade, Mont.-based Bacterin develops, manufactures and markets biologics products to optimize the growth factors in human allografts to promote bone growth, subchondral repair and dermal growth.
| Issuer: | Bacterin International Holdings, Inc.
|
| Issue: | Unsubordinated convertible senior unsecured notes
|
| Amount: | $65 million
|
| Greenshoe: | $9.75 million
|
| Maturity: | 2021
|
| Coupon: | 6%, payable on April 15, 2016, then semiannually on Jan. 15 and July 15 of each year
|
| Conversion price: | $3.88 (approximate)
|
| Conversion premium: | 21.25%
|
| Conversion ratio: | 257.5163 shares per $1,000 principal amount
|
| Warrants: | No
|
| Pricing date: | July 27
|
| Stock symbol: | OTCBB: BONE
|
| Stock price: | $3.20 at close July 26
|
| Market capitalization: | $24.01 million
|
| Distribution: | Rule 144A
|
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