BioMarin Pharmaceutical Inc. plans to sell $450 million of senior subordinated convertible notes due 2024 in an underwritten offering.
The company also granted the underwriters an option to buy up to an additional $50 million of notes.
BioMarin plans to use a majority of the net proceeds from the offering to repay, repurchase or settle in cash some or all of its 0.75% senior subordinated convertible notes due in October 2018, although it does not intend to effect any such repayment or repurchase concurrently with the offering.
The remaining net proceeds will be used for general corporate purposes, including clinical trials of its product candidates and the expansion of its manufacturing capacity, particularly with respect to the manufacturing capability for its gene therapy program.
The notes will be convertible into BioMarin's common shares plus, if applicable, cash in lieu of any fractional share.
BofA Merrill Lynch is acting as book-running manager for this offering. J.P. Morgan and Goldman Sachs & Co. are acting as joint book-runners.