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Sucampo Pharmaceuticals issues $300M of convertible senior notes

Sucampo Pharmaceuticals Inc. issued $300 million of 3.25% convertible senior notes due Dec. 15, 2021.

The issued notes included $40 million of notes sold under an overallotment option to acquire additional notes.

Interest on the notes is payable semiannually in cash in arrears on June 15 and Dec. 15 of each year, starting June 15, 2017.

Sucampo estimates that the net proceeds from the note offering will be $290.4 million.

The company plans to use the net proceeds to repay in full about $238.4 million due under its senior secured credit facility, including all accrued but unpaid interest and a prepayment premium. It intends to use the remaining net proceeds for general corporate purposes.

The notes are convertible at an initial conversion rate of 60.2637 class A common shares per $1,000 of the notes, which is equal to an initial conversion price of about $16.59 per share. Upon conversion, the notes will be settled in the company's common shares, along with a cash payment for delivering any fractional share.

Leerink Partners LLC served as the sole book-running manager of the issue.