Announces Proposed Offering of $425M of Convertible Senior Notes
- Announced today that it intends to offer, subject to market and other considerations, $425.0 million aggregate principal amount of Convertible Senior Notes due 2021 (the "Convertible Notes") in a private placement. Isis also intends to grant to the initial purchasers of the Convertible Notes a 30-day option to purchase up to an additional $63.75 million aggregate principal amount of the Convertible Notes, solely to cover over-allotments, if any.
- Concurrently with this offering, Isis intends to use a portion of the net proceeds of the offering to repurchase up to $140.0 million principal amount of its outstanding 2 3/4% Convertible Senior Notes due 2019 (the "2019 Notes") through individually negotiated transactions with holders of such 2019 Notes. Any repurchase of the 2019 Notes could have the effect of raising or maintaining the market price of Isis' common stock above levels that would otherwise have prevailed or preventing or retarding a decline in the market price of its common stock. In addition, following this offering, Isis intends to use the remainder of the net proceeds to develop select drugs in its pipeline to later stages of development prior to partnering, to further develop and potentially commercialize the drugs in its lipid franchise and for general corporate and working capital purposes.- The Convertible Notes will be general unsecured senior obligations of Isis and will accrue interest payable semiannually in arrears. The Convertible Notes will be convertible under certain circumstances, and Isis will settle conversions of the Convertible Notes by paying or delivering, as the case may be, cash, shares of its common stock or a combination of cash and shares of its common stock, at its election. The interest rate, conversion rate and other terms of the Convertible Notes will be determined at the time of pricing of the offering.