BioMarin Pharmaceutical Inc. closed on the sale of about $324.9 million in convertible notes, money that will be used to fund business development.
The 10-year, 1.875 percent senior subordinated notes are convertible into BioMarin common stock at an initial rate of 49.1171 shares per $1,000 principal amount, or about $20.36 per share, subject to certain potential adjustments. BioMarin's stock (NASDAQ:BMRN) lost 6 cents Tuesday to close at $16.50.
BioMarin received about $316.4 million from the notes sale after deducting the underwriting discount and offering expenses. Totals include about $42.4 purchased per the underwriter's overallotment option. Merrill Lynch & Co. was sole book-running manager of the public offering. The securities were sold from an effective shelf registration statement.
The company intends to use proceeds for general corporate purposes and to fund future business-development transactions, which it said might include acquisitions or licenses of complementary businesses, technologies or products. It added that it has no material agreements or commitments with respect to any such deals.
In other financing news:
• Avexa Ltd., of Melbourne, Australia, closed on financing deals totaling about A$75 million (US$62 million). It closed on an oversubscribed A$60 million rights issue that was fully underwritten by ABN AMRO Morgans Corp. Ltd., which followed an A$15.4 million placement with U.S. institutional investors. Most of the funds will go toward the Phase III trials of the HIV drug candidate apricitabine (ATC), which has successfully completed Phase IIb trials. (See BioWorld Today, March 22, 2007.)
• Pharmacopeia Inc., of Princeton, N.J., said it plans to publicly offer 6.25 million shares pursuant to an effective shelf registration statement. The sale of that many shares would gross about $40.25 million based on Monday's closing price of $6.44. Pharmacopeia shares (NASDAQ:PCOP) fell 46 cents Tuesday to close at $5.98. CIBC World Markets Corp. is book-running manager in the offering, with Canaccord Adams and Merriman Curhan Ford & Co. acting as co-managers. They would have an overallotment option on 937,500 additional shares.
• Array BioPharma Inc., of Boulder, Colo., said it plans to publicly offer 7 million shares from an effective shelf registration statement. The sale of that many shares at Monday's closing price of $13.91 would gross about $97.4 million. The stock (NASDAQ:ARRY) fell 61 cents Tuesday to close at $13.30. J.P. Morgan Securities Inc. and Banc of America Securities LLC are joint book-running managers for the offering. Jefferies & Co. Inc. and Piper Jaffray & Co. are co-managers. They would have an overallotment option on 1.05 million additional shares.
• Tapestry Pharmaceuticals Inc., of Boulder, Colo., filed a registration statement relating to a proposed public offering of up to $40 million of its common stock. Banc of America Securities LLC will act as sole book-running manager for the offering. Needham & Co. LLC will act as co-lead manager and Rodman & Renshaw LLC will act as co-manager. Tapestry is developing therapies for the treatment of cancer.