ANI Pharmaceuticals announces $125 million public financing

Posted on 08 December 2014

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ANI Pharmaceuticals announced the pricing of an underwritten public financing offering of $125,000,000 aggregate principal amount of its 3.00% Convertible Senior Notes due 2019 .

The aggregate principal offering amount was increased from the previously announced offering size of $100,000,000.

The underwriters have a 30-day option to purchase up to an additional $18,750,000 aggregate principal amount of the Notes from the Company, solely to cover over-allotments, if any.

The initial conversion rate of the Notes will be 14.3916 shares of the Company's common stock per $1,000 principal amount of Notes, which is equal to a conversion price of approximately $69.48 per share, subject to adjustment in certain circumstances.

As a result of the convertible note hedge and warrant transactions described below, the initial effective conversion price for the Notes, solely from the perspective of the Company, is $96.21 per share, which represents an 80% premium to the closing sale price of the Company's common stock on December 4, 2014.

The Notes will pay interest semiannually at a rate of 3.00% per annum and will mature on December 1, 2019, unless earlier repurchased or converted.

The initial conversion rate of the Notes is subject to adjustment upon the occurrence of certain events, but will not be adjusted for any accrued and unpaid interest.

Prior to June 1, 2019, the Notes will be convertible only upon certain circumstances and during certain periods, and thereafter will be convertible at any time prior to the close of business on the second scheduled trading day prior to maturity.

Upon conversion, holders will receive cash, shares of the Company's common stock or a combination thereof at the Company's election.

The Company expects to use approximately $13.6 million of the net proceeds of the offering of the Notes to pay the cost of the convertible note hedge transaction described below after such cost is partially offset by the proceeds of the warrant transaction described below to raise the effective initial conversion price of the Notes from the Company's perspective, and to use the remaining proceeds of the offering for research, development and commercialization of our drug products, to acquire complementary businesses, products, and technologies that we may identify from time to time and for other working capital and general corporate purposes.

For further deal information visit Current Agreements (subscription required)


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