Corium greenshoe lifts 5% seven-year convertibles to $120 million

By Susanna Moon

Chicago, March 16 – Corium International Inc. said underwriters fully exercised the $20 million over-allotment option under its seven-year convertible notes on Friday.

The greenshoe exercise brings the total deal size to $120 million, according to an 8-K filing with the Securities and Exchange Commission.

As reported, Corium priced $100 million of the convertibles before the market open on March 1 at par with a coupon of 5% and an initial conversion premium of 32.5%.

Pricing came at the cheap end of talk for a coupon of 4.5% to 5% and within talk for an initial conversion premium of 30% to 35%.

Cantor Fitzgerald & Co. is the manager for the Rule 144A deal.

The notes are non-callable for four years and then are provisionally callable subject to a 130% hurdle. Holders will have the right to require Corium to repurchase all or a portion of the notes for cash upon a fundamental change.

Proceeds will be used to retire existing debt, for working capital and for general corporate purposes. Corium intends to use $56 million of proceeds to repay in full its outstanding borrowings under its term loan agreement with CRG, according to a company news release.

Corium is a Menlo Park, Calif.-based commercial-stage biopharmaceutical company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.