Isis Pharmaceuticals Inc. (ISIS: Quote) said it has priced its offering of $201.25 million aggregate principal amount of Convertible Senior Notes due 2019 in a private placement, including $26.25 million aggregate principal amount of the Convertible Senior Notes due 2019 being sold pursuant to the exercise in full of the initial purchasers' over-allotment option. The sale of the Convertible Notes may close on August 13, 2012.
The company expects the net proceeds from this offering to be around $194.8 million, after deducting discounts to the initial purchasers and estimated offering expenses payable by Isis. Following this, Isis plans to use a substantial portion of the net proceeds of this offering to redeem its outstanding 2 ?% Convertible Subordinated Notes due 2027, and the remainder of the proceeds for general corporate and working capital purposes.
The Convertible Notes would bear interest at a fixed rate of 2 3/4% per year, payable semiannually in arrears on April 1 and October 1 of each year, beginning on October 1, 2012, according to the company. The Convertible Notes would mature on October 1, 2019, unless earlier purchased, redeemed or converted.
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by RTT Staff Writer
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