OPKO Health, Inc. Announces Private Offering of Convertible Senior Notes
OPKO Health, Inc. (NASDAQ:OPK) has announced a private offering of $200.0 million aggregate principal amount of its Convertible Senior Notes due 2029. The Company also expects to grant the initial purchaser an option to purchase up to an additional $30.0 million aggregate principal amount of the Notes.
The Notes will be senior unsecured obligations of the Company, with semiannual interest payments and a maturity date of January 15, 2029. Holders of the Notes will have the right to convert them in certain circumstances and during specified periods, with conversions being settled in cash, shares of the Company’s common stock, or a combination of both.
The interest rate, initial conversion rate, and other terms of the Notes will be determined at the pricing of the Notes. In a concurrent private placement, certain entities affiliated with Phillip Frost, M.D., the Company’s Chairman and Chief Executive Officer, and Jane H. Hsiao, Ph.D., MBA, the Company’s Vice-Chairman and Chief Technical Officer, as well as additional existing holders, have indicated an interest in acquiring approximately $70.0 million aggregate principal amount of the Company’s Convertible Senior Notes due 2029 (the “Affiliate Notes”) in exchange for approximately $70.0 million aggregate principal amount of the Company’s existing 5% convertible promissory notes, inclusive of approximately $5.0 million of accrued but unpaid interest thereon, held by such persons.
The Company expects to use up to $50.0 million of the net proceeds from the offering of the Notes, and, if needed, cash on hand, to repurchase shares of the common stock from purchasers of Notes in privately negotiated transactions. Additionally, the Company expects to enter into separate, privately negotiated transactions with one or more holders of the Company’s outstanding 4.50% Convertible Senior Notes due 2025 (the “2025 Convertible Senior Notes”) to repurchase a portion of such notes.
OPKO Health, Inc has announced a private offering of Convertible Senior Notes, with the option for the initial purchaser to purchase additional Notes. The Notes will be senior unsecured obligations of the Company and holders will have the right to convert them in certain circumstances. The interest rate, initial conversion rate, and other terms will be determined at the pricing of the Notes.
