Pacira BioSciences Inc., under the ticker symbol PCRX, announced last Friday that it has set a price for their $250 million worth of convertible senior notes, which are scheduled to mature in 2029. The private placement is exclusively available to qualified institutional buyers.
Additionally, Pacira plans to offer the initial buyers the option to purchase an extra $37.5 million in notes within a 13-day period from the issuance.
The notes are unsecured senior obligations earmarked to mature on May 15, 2029. They carry an interest rate of 2.125% per annum, paid bi-annually on May 15 and November 15 each year, with the first payment due on November 15, 2024.
The sale of these notes is projected to be completed on May 14, 2024, conditioned on standard closing procedures.
Pacira forecasts that the net revenues from this issuance will be around $242.0 million. This figure could potentially reach approximately $278.4 million, should the initial buyers choose to exercise their option to buy additional notes in totality.
The company plans to use around $191.4 million of the net proceeds to buy back $200.0 million of its currently outstanding 0.750% Convertible Senior Notes that are set to mature in 2025.
Furthermore, Pacira intends to spend approximately $23.2 million of the net proceeds to cater for the costs associated with initiating capped call transactions.
Simultaneously, when the note offering is priced, Pacira expects to repurchase around 837,240 of its common shares utilizing nearly $25 million of the net proceeds through private transactions.
Finally, the company plans to use the leftover net proceeds from the issuance for their general business purposes, which includes working capital, research, and developmental expenses.
