Amicus Therapeutics, Inc. (NASDAQ:FOLD) an international biotechnology firm working in the forefront of rare and orphan diseases, has priced its previously reported private offering of $225 million total principal amount of 3% convertible senior notes unpaid 2023 in a private placement deal under the “Securities Act”.
Amicus has approved the initial buyers an alternative, exercisable for 30 days, to buy up to an additional total principal sum of notes of $25 million on the similar terms and conditions, exclusively to accommodate over-allotments, if any. This offering is projected to close by December 21, 2016, dependent to customary closing conditions.
The “Notes” will be senior unsecured responsibilities of Amicus. It will bear interest of 3% per annum, to be paid semi-annually on December 15 and June 15 of each year, starting June 15, 2017. The “Notes” will mature in December 2023, unless earlier redeemed, converted or repurchased. It will be convertible at the alternative of holders, under specific circumstances and during specific periods, into shares, cash of Amicus’ common stock or a mix of shares and cash of Amicus’ common stock, at firm’ election.
The initial conversion price of the notes is more than 163.39 shares of company’ common stock per $1,000 principal sum of notes, which is equal to a preliminary conversion price of roughly $6.12 per share of Amicus’ stock. This preliminary conversion price indicates a premium of almost 27.5% over the last posted sale price of Amicus’ stock at $4.80.
The conversion price will be reliant to adjustment upon the incidence of specific events. Amicus may exchange for cash all or a percentage of the notes, at its discretion, on or after December 2020, under specific circumstances at a redemption rate equal to 100% of the principal sum of the notes to be cashed, plus unpaid and accrued interest to, but discounting, the redemption date.
The net proceeds anticipated from the deal is approximately $218.7 million after deducting the preliminary purchasers’ commissions and discounts and projected offering costs payable by Amicus.