Global biopharmaceutical company Sucampo Pharmaceuticals intends to offer qualified institutional buyers convertible senior notes in the total amount of $225 million principle, subject to market and other conditions.
Initial purchasers will also have the option to buy up to an additional $33.75 million worth of notes to cover any over-allotments for the first 13 days after purchase.
The notes will accrue interest payable semiannually in arrears while remaining senior unsecured obligations of Sucampo. Purchasers may also choose to convert the notes into shares of Sucampo’s Class A common stock.
Net proceeds of the note offering will be used by Sucampo to repay in full amounts due, including accrued, unpaid interest and a prepayment premium, under Sucampo’s senior secured credit facility. Any other net profits above and beyond this will be used for Sucampo’s general corporate purposes.
The interest rate, initial conversion rate, initial effective conversion price and other terms will be determined at the time of pricing. Sucampo does not expect the notes or shares to be registered under the Securities Act or securities laws of other jurisdictions.
Sucampo is focused on the development and commercialization of medicines to meet unmet medical needs of patients across the globe.
