Telix Pharmaceuticals raises USD550m in convertible note refinance
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The news: Telix Pharmaceuticals said it has launched a USD550 million ($773.9 million) offering of convertible notes due 2031 as part of refinancing its existing convertible bonds due 2029.
The numbers: In an ASX announcement published after market close on Tuesday, Telix said the new notes, which will be guaranteed by Telix’s parent company and US unit, will be listed on the Singapore exchange and will carry a coupon of 1.50-1.75%. Telix said the notes will have a conversion premium of 35.0-37.5%, above the current share price.
The context: Telix said the new bonds represent “attractive, low-cost financing to Telix and are non-dilutive until any potential future conversion occur.”
The offering is being marketed to investors, with the final bookbuild process expected to be completed prior to market open on Wednesday 15 April.
JPMorgan is acting as sole bookrunner on the offering and will also act as sole dealer manager for Telix’s concurrent repurchase.
What they said: Managing director and group CEO, Dr. Christian Behrenbruch, said: “The refinance of the existing Convertible Bonds represents our proactive approach to capital management. The new Convertible Bonds will continue to provide the business with cost effective financing.”
