Array BioPharma Inc. (ARRY) announced that it has priced underwritten public offering of $115 million of convertible senior notes. The company anticipates to close the offering on or about June 10, 2013.
Array BioPharma also granted underwriters a 30-day option to purchase up to an additional $17.25 million of convertible senior notes.
Array BioPharma expects offering net proceeds to be $111.3 million after deducting expenses. The company plans to use about $92.6 million of the net proceeds to repay its outstanding secured indebtedness, with the remaining proceeds expected to be used for general corporate purposes.
The notes will bear interest at a rate of 3.0% per year, payable semi-annually, and will mature on June 1, 2020. The notes will be convertible by the holders beginning March 1, 2020, or earlier upon specified events, and upon conversion, the holders will receive, at Array's option, shares of Array's common stock, cash or a combination of shares and cash.
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