Dermira selling $250 million five-year convertible notes to yield 2.75%-3.25%, up 25%-30%

By Stephanie N. Rotondo

Seattle, May 9 – Dermira Inc. plans to price $250 million of convertible senior notes due 2022, the company said in a press release on Tuesday.

Price talk on the Rule 144A deal is for a 2.75% to 3.25% yield and an initial conversion premium of 25% to 30%.

Pricing is expected after Wednesday’s close.

Leerink Partners and Cowen & Co. are the joint bookrunners.

There is a $37.5 million over-allotment option.

The notes are convertible at the holder’s option into common stock.

The issue is non-callable for life.

Proceeds will be used for working capital, capital expenditures and other general corporate purposes. The Menlo Park, Calif.-based skin condition drug developer may also use some of the funds to expand its business by in-licensing or acquiring product candidates, technologies, compounds, other assets, commercial products or complementary businesses, though there are no current plans to do so.

© 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.